ABSTRACT

WIJAYA, ARI, University of Trisakti, March 2009, “The Analysis of

Determining of Consumer Goods Distribution Center on Logistic
Performance in Indonesia”.

Major Advisor : Prof. Dr. Ir. Syamsir Abduh

Highly competitive global situations drive all company to strive having

competitive advantages in order to survive within these circumstances.
Logistic leverages which applied by the company will create the one of
these competitive advantages.

Logistic management application has to make added-value to the goods

and/or services. Ballou described 3 strategies to achieve best customer
goals named as triangle logistics strategy : (1) inventory strategy, (2)
transportation strategy and (3) location strategy. Strategic planning has to
be in-line with other company strategy.

How to select the distribution center location and its numbers, take the
important roles. Many studies are published that giving the logistics
performance in many angles. The main activities on distribution are
freight-in and freight-out activity. In order to be focus, in this research,
freight-out activity was as a main study. Two fast moving consumer goods
companies were studied and asked to submit the data. Secondary data
and also some calculations based on the order data were as a based of
the further data analysis.

This research indicated that : (1) freight-out cost, (2) freight-out lead time
and (3) inventory level, impacted to determine the distribution center
location. Also, indicate that determining the best location of the distribution
center will improve the logistic performances : (1) to save the freight-out
cost at least by 15%, (2) to reduce the lead-time by 25.4% and (3) to
reduce the inventory level by 9.7%.