Supply Chain Network Design Optimization Model for Determining the Location of The Facilitation Allocation for The Procurement of Machinery for Commodity Auctions in Magetan Regency

Abstract

There are many obstacles in pre, process, and post-auction activities as well as repair solutions that have been studied previously. Obstacles in implementing the auction market were also experienced by farmer groups in Magetan Regency as participants in the Forward Commodity Auction Market (PLFK) in East Java Province. This case study follows up on one of the alternative solutions from previous research. namely the procurement of machines which is a program of the TPHPKP Office to improve the quality and selling value of auction commodities in Magetan Regency. Based on this, it is necessary to make a decide to determine the location of the machine because the machine depends on the area to meet the needs of farmers who have limited accessibility based on the concept of a supply chain network. This study proposes the selection of a location for the procurement of machines for auction commodities of pamelo oranges, cassava, corn, peanuts, and rice. This study will design a supply chain network involved in the procurement of auction commodity machines in Magetan Regency and design a Gravity Model Location to determine the location of the machine placement. Relationships between entities and calculations using the Gravity Model Location can produce coordinates as the optimal location for placing the machine. Through mathematical calculations using the Gravity Model Location, it was found that the optimum location for laying the five proposed commodity auctions.