2ND MODULE

DETERMINING FACILITY LOCATION

PRACTICUM SUBSTANCE

Determining facility location

PRACTICUM OBJECTIVES

1. Students are able to understand the related aspects to determine the

location of a facility or factory
2. Students are able to find the best location for a distribution point using
Center of Gravity method with ArcGIS online, ArcMap, and Google Earth
3. Students are able to understand the selection of alternative plan locations
using Factor Rating method

PRACTICUM TOOLS

1. Microsoft Excel
2. ArcGIS.com
3. ArcMap

PRACTICUM REQUIREMENT

1. Module/Guidelines

STUDY CASE

PT PFT is a manufacturing company producing trolley. PT PFT will build a

factory to meet the demand of the domestic market by business to business (B2B).
Consumers of PT PFT are located in West Java, especially big cities such as
Bekasi, Bogor, Sukabumi, Tasikmalaya, and Indramayu. To build a factory, the
company needs the right location in order to minimize the cost of distribution. The
method used in determining factory location alternatives is using Center of
Gravity and Factor Rating by looking at some considerations such as UMR,
distance from supplier, land price, HR, disaster risk, and transportation access.
PRACTICUM STEP
A. Center of Gravity
1. Open ArcMap, add .tiff file and digitize the map. Digitation is conversion
process from analog data into digital format.

Figure I.1 First step of Center of Gravity method

2. Compress all shapefile into .zip folder

Figure II.2 Second step of Center of Gravity method

 3. Put the total demand of each area

No. City Longitude Latitude Demand DX DY

(X) (Y)
1 Bekasi 107,09 -6,28 80104
2 Bogor 106,87 -6,50 65341
3 Sukabumi 106,93 -6,92 230532
4 Tasikmalaya 108,22 -7,33 278790
5 Indramayu 108,00 -6,32 128233
Total 783000
Figure III.3 Third step of Center of Gravity method
4. Calculate the X and Y coordinates with Center of Gravity formula

No. City Longitude Latitude Demand DX DY

(X) (Y)
1 Bekasi 107,09 -6,28 80104 8578495,65 -503430,97
2 Bogor 106,87 -6,50 65341 6983069,84 -424438,54
3 Sukabumi 106,93 -6,92 230532 24650161,56 -1595655,13
4 Tasikmalaya 108,22 -7,33 278790 30169721,81 -2043779,10
5 Indramayu 108,00 -6,32 128233 13849257,10 -810034,52
Total 783000 84230705,94 -
5377338,269

COG
X Y
107,57 -6,87
Figure IV.4 Fourth step of Center of Gravity method

5. Input X and Y coordinates result in CoG database file

Company Name Contact Address City Demand TYPE LATITUDE LONGITUDE IMAGE
PT. FAB Bu Fajria Jl. Kw. Industri, RT.4/RW.1, 80104
BekasiGandamekar, Customer
Cikarang -6.284717 107.091976
Bar., https://upload.wikimedia.org/wikipedia/commons/e/e2/Fa
Bekasi, Jawa Barat 17530
PT. RIF Pak Arif Jl. Pahlawan Kp. Kambing, 65341
BogorRT.07/RW.05, Customer
Karang -6.495746
Asem Bar., Citeureup,106.871181 https://lastfm-img2.akamaized.n
Bogor, Jawa Barat 16810
PT. AJW Pak Punto Sukabumi
Jl. Mayawati, Gunungparang, 230532
Cikole, Kota Customer
Sukabumi, Jawa -6.921621
Barat 43111 106.927288 http://www.hydroflex-surfboard
PT. AKS Pak Akma Jl. Cihideung Balong, Nagarawangi, 278790 Customer
TasikmalayaCihideung, Tasikmalaya,-7.330891 108.216657 http://akssolution.com/wp-cont
West Java 46124
PT. ALI IndramayuJawa128233
Pak Aliando Jl. Patrol, Kabupaten Indramayu, Customer -6.316896 108.000726 http://www.pikiran-rakyat.com/
Barat 45257
COG FRI-XXX COG -6.867609 107.574337

Figure I.5 Fifth step of Center of Gravity method

6. Save as the file into .csv format
 Figure V.6 Sixth step of Center of Gravity method
7. Open my content feature in ArcGis.com, click create new map and define
the title & tags of map

Figure VI.7 Seventh step of Center of Gravity method

8. Import CoG database file and digitization file (zip, csv, txt, or gpx) by
clicking add layer from file menu
 Figure VII.8 Eighth step of Center of Gravity method
9. Customize shape, fill and outline of the points by opening options on
select a Drawing Style menu and click the point icon then ok.

Figure VIII.9 Ninth step of Center of Gravity method

10. Open configure pop-up of CoG Database, click configure attributes and
uncheck list image. Next, click add pop-up media the clear title field and
add attribute image in URL field.

Figure I.10 Tenth step of Center of Gravity method

 Figure IX.11 Eleventh step of Center of Gravity method
11. Display of CoG Database and digitization file in ArcGis.com

Figure X.12 Last step of Center of Gravity method

B. Factor Rating
1. Identify the relevance factors and define the data type of each factors
2. Determine the weight and scale for each factor

Factor Wt
UMR/UMK 0,2
Distance of wheels supplier 0,1
Quantitative

Distance of aluminium supplier 0,1

Distance of plastics supplier 0,1

Land Cost 0,1

HR Quality 0,15
alit
Qu

ati
ve
 Nature disasters risk 0,15
Transportation access 0,1
Total 1

Determining scale for factors

Scale : 100
Figure I.13 First step of Factor Rating
3. Define quantitative factors data by uploading supplier database and factory
candidate to arcgis.com similar to the former step of uploading CoG database.

Figure I.14 Second step of Factor Rating

Figure I.15 Third step of Factor Rating

4. Complete the data on arcgis.com that sourced from supplier database and
factory candidate to qualitative factors table.
 Figure I.16 Fourth step of Factor Rating

Quantitative Factors Alternatives

Cimahi Bandung Parongpong
UMR/UMK Rp. 2.463.461,- Rp. 2.843.662,55 Rp. 2.468.289,44
Distance of wheels supplier
Distance of aluminium supplier
Distance of plastics supplier
Land Cost / m2 Rp. 2.232.458 Rp. 2.565.897 Rp. 2.142.857
Table I.1 Fifth step of Factor Rating
5. For supplier distance, use tools directions by clicking get directions on one of
the factory location candidate and pointing to one of supplier location. Record
the distance and input in quantitative factors table based on each candidate and
supplier location.

Figure I.18 Location candidate in Cimahi

 Figure I.19 Location candidate in Cimahi to plastic supplier

Figure I.20 Location candidate in Cimahi to aluminum supplier

 Figure I.21 Location candidate in Cimahi to tire supplier

Quantitative Factors Alternatives

Cimahi Bandung Parongpong
UMR/UMK Rp. 2.463.461,- Rp. 2.843.662,55 Rp. 2.468.289,44
Distance of wheels supplier / km 12,80
Distance of aluminium supplier 4,57
Distance of plastics supplier 1,81
Land Cost / m2 Rp. 2.232.458 Rp. 2.565.897 Rp. 2.142.857
Table I.2 Quantitative Factors

6. Repeat the steps for each of factory location to each supplier candidate.
Complete the data for quantitative factors

Quantitative Factors Alternatives

Cimahi Bandung Parongpong
UMR/UMK Rp. 2.463.461,- Rp. 2.843.662,55 Rp. 2.468.289,44
Distance of wheels supplier / km 12,80 10,51 21,14
Distance of aluminium supplier 4,57 14,14 9,32
Distance of plastics supplier 1,81 24,39 7,96
Land Cost / m2 Rp. 2.232.458 Rp. 2.565.897 Rp. 2.142.857
Table I.3 Quantitative Factors

7. Score each location with a relevant value. For quantitative data, use
normalization formula:

rij = if j is benefit attribute

rij = if j is cost attribute

Figure I.21 Normalization step

8. Multiply the score by weight for each factor and total the score for each
location
Cimahi Bandung Parongpong
Factors Wt Score Wtd Score Wtd Score Wtd
UMR/UMK 0,2 100,00 20,00 86,63 17,33 99,80 19,96
Distance of wheels supplier 0,1 82,11 8,21 100,00 10,00 49,72 4,97
Distance of aluminium supplier 0,1 100,00 10,00 32,32 3,23 49,03 4,90
Distance of plastics supplier 0,1 100,00 10,00 7,42 0,74 22,74 2,27
Land cost 0,1 95,99 9,60 83,51 8,35 100,00 10,00
HR Quality 0,15 75,00 11,25 75,00 11,25 74,00 11,10
Nature disasters risk 0,15 76,00 11,40 71,00 10,65 73,00 10,95
Transportation access 0,1 80,00 8,00 71,00 7,10 69,00 6,90
Total 1 88,46 68,65 71,06

Figure I.22 Scoring step

9. Determine the best location based on the maximum point score

Conclusion: The location was chosen as the location of the factory is

Cimahi.
Reason: Cimahi has a highest rating from the calculation factors with
score 88.46 compared to Bandung and Parongpong.