Tag Archive for: CoG

Indonesia’s Manufacturing Industry, encompassing processing and non-oil and gas processing, grew in Q3 of 2022, contributing 17.88% and 16.10% to GDP. Transportation and storage played a significant part, with a 15.93% year-on-year growth in Q1 2023, highlighting the sector’s importance. PT. PPT is a sub-holding of one of Indonesia’s companies. The company manages to trade PP/PE significantly from more sources (import, local producer, or local trader). This research will determine and analyze the criteria for the selection of warehouse locations for PT. PPT analyzes the weight of each criterion at each location in the warehouse location selection process for PT. PPT and obtain the priority location for PT. PPT to build a new warehouse.  This research aims to guide and help the decision makers to choose and find a suitable location based on the Centre of Gravity (CoG) analysis conducted by a third-party consultant. The five locations resulting from the Centre of Gravity (CoG) as alternatives will be analysed with Kepner-Tregoe Analysis in the decision-making process, using Situation Appraisal defined in Business Issues. The author then employs a Rich Picture and Fishbone Diagram to assess the scenario or the process of select the new warehouse. The decision analysis was carried out in eight stages using the one of Multi-Criteria Decision Making (MCDM) method, which is the Simple Multi-Attribute Rating Technique (SMART). Lastly, using the preceding analysis, undertake a Potential Problem Analysis. The major criterion is the distance to the customer, which aligns with the company’s emphasis on customer satisfaction. Demand growth affects warehouse capacity, with more growth necessitating a larger facility. Distance from suppliers reduces delivery lead time, and the size of the land must accommodate demand growth and product capacity for PT. PPT.