K-Means Method for Determining Location of Facilities and Development of Supply Chain Network for Salt Commodities in Sumenep District

• Published in: 2020 6th Information Technology International Seminar (ITIS) pp. 193 - 197
• Main Authors: Hidayat, Rachmad, Akhmad, Sabarudin, Winarso, Kukuh, Arendra, Anis
• Format: Conference Proceeding
• Language: English
• Published: IEEE 14.10.2020
• Subjects: Companies; Cost Minimization; Industrial engineering; International collaboration; K-Means; Linear programming; Mathematical model; Production; Salt farmers; Supply Chain Distribution; Supply chains
• DOI: 10.1109/ITIS50118.2020.9321040

Madura, especially the District of Sumenep as the largest salt producer in Indonesia, still faces several problems with the distribution of salt, capacity, and location of salt collecting warehouses. The salt distribution channel started from the Salt Farmer Venture Group, which is traditionally called Kugar, to the Communal Joint Venture's warehouse and government-owned company's warehouse and then to the salt processing plants. The distance between Kugar which is scattered in the Sumenep District area makes it difficult to collect salt from farmer's venture to the salt aggregation warehouse. A strategy was needed to minimize the transport distance route to achieve the lowest distribution costs. The strategy was to cluster Kugar using the K-Means approach. There are 7 Kugar clusters; Kugar 44, Kugar 76, Kugar 5, Kugar 62, Kugar 31, Kugar 11, and Kugar 24. The salt transshipment lines via Kugar 44 to G8, then G8 sends to G5 and G6. Kugar 76 sends to G3 and G4. Kugar 5 sends to G7. Kugar 62 sends to G8 and G4. Kugar 31 to G8. Kugar 11 sends it to G7. Kugar24 sends it to G8 and Kugar 44 sends it to G9. A maximum salt capacity that can be accommodated by the Communal Joint Venture and government-owned company warehouse was 132,328.2 tons and 171,224.85 tons respectively. The total existing available warehouse capacity was 217,000 tons, and 8 new warehouses are still needed with 11,000 tons capacity each. The locations of the warehouses are located in Pinggirpapas Village, Karanganyar Village, Kertasada Village, Gresik Putih Village, Nambakor Village, Karangbudi Village, Pragaan Laok Village, and Kebundadap Barat Village. The locations of these warehouses are in accordance with the center of each cluster of Kugar. (Abstract)