ANALYSIS OF COST OPTIMIZATION OF POTATO DISTRIBUTION IN GARUT REGENCY

Abstract

Supply chain management has become an essential concept in the business world. Thus, the supply chain itself occupies an essential position in companies' decisions. This study aimed to determine the supply chain management of potatoes in Garut Regency by offering a scenario for the distribution of goods using the transportation method. This research uses a descriptive quantitative method, based on time; it is cross-sectional. The data were taken through secondary data and interviews with the directors of the three most significant trading companies in the South Garut area. There are three distribution destinations for potato products originating from Garut, namely markets in Jakarta, the city of Tangerang, and Bogor. Data analysis techniques used are production management models and transportation methods. The results showed that the least cost method had the lowest value compared to other methods. The results show that the lowest cost is the distribution of potatoes from trading company 1 to the Bogor area. the Garut Regency Agriculture Service (2017), the three companies have the largest potato harvest area in the 2013-2017 period in Garut Regency. Cikajang sub-district has the highest average harvested area of 1,306 ha/year, although it has decreased from year to year. The area of land certainly affects the amount of potato production. Potato production in the Cikajang District has the highest production rate, with an average of 30,079 tons per year in 5 years. The highest production figure occurred in 2013, which was 35,435 tons per year, and the lowest was in 2017 with 27,904 tons. The decline in production every year certainly needs to be considered and studied from various aspects.