Scientific paper ID 2669 : 2025/4

The Gravity Location Model is specifically optimization model of Supply chain management /SCM/. The Gravity Location Model is mathematical technique used in supply chain management to determine the optimal location for facilities such as warehouse, distribution center and manufacturing plant. The Gravity Location Model takes into account three main components the origin point, the destination point, and the transportation cost or distance between them. By analyzing these factors, the model can calculate the best location or facility to minimize the transportation cost and improve operational efficiency. Distribution networks and transportation allow product to move from manufacture location to the customer location that is often limited by long distances. Therefore, the ability to manage distribution networks today is a component of competitive advantage that is very important for many industries. To distribute a product, a company certainly needs to decide the fastest and the most inexpensive route. In determining a distribution route, pickup vehicle capacity and labor cost must also be considered by the company. With the optimal distribution route, the company not only minimize distribution costs but also increase customer satisfaction with on-time delivery. In addition to the distribution route, the location of a strategic distribution center must also be considered by the company about its proximity to distribution locations or market.