Warehouse Location Determination and Route Optimization for an Upcoming 5 MWp Photovoltaic Solar Panels in Central Borneo Indonesia

Abstract

In logistics warehousing, a well-planned determination of distribution points and optimal routes would reduce the required distance, cost, and time to deliver a product. Borneo Project is the first solar PV panel distribution activity to 15 customers in various districts in Central Borneo. Warehouse planning and distribution routes are still unavailable. Thus, this research aims to determine the location and size of warehouse, and the optimal distribution routes. The results show that the optimal warehouse size is 15 m in length and 30.45 m in width to accommodate 150 solar PV panels’ pallets. The optimal place to build a warehouse is in Tumbang-Runen, Katingan Regency, Central Borneo; and the optimal proposed route reduced 15 into 9 routes that provide the distribution cost savings of IDR 27,610,920 or 49.7% and route savings of 1757.5 km or 24.52% by using Clarke and Wright Saving Matrix method, instead of using initial routing method.