Optimization Model Supply Chain Network Design Determine Location-Allocation the Terminal Cathode Factory

Abstract

Pati has a high certainty of raw material supply but Pati salt farmers experience quality and price problems. Currently, there is another potential high-value salt, namely as an energy source (Cathode battery). To solve this problem, the cathode terminal was built by considering the existing sand. Supply chain network design (SCND) is one of the most important strategic decisions in supply chain management. This paper presents novel research on the network design of a simplified single product multi farming and multi-terminal for salt raw material in cathode battery. The proposed optimization model minimized cost to determine the location of the cathode battery terminal by using Lingo Sofware. This paper will explain when the terminal opened and any farmer delivery salt raw material. This study develops a mathematic model for making a decision cathode battery terminal opened by mixed-integer linear programming (MILP). The result shows terminal 1 (Z1) receives a greater supply of raw materials and the least received supply from farming is terminal 3 (Z3).