| PT Kawan Lama Sejahtera is the largest retail company that works in handy tools and home appliances in Indonesia, with 66 outlets throught the Jabodetabek region. To the retail industry, the distribution system is the main challenge that must be faced by the company. Choosing the right strategy will save unnecessary costs and reduce distribution time. The distribution time needed to get products to the warehouse and ready for shipping at DC Cikarang is currently 7 days. This distribution time is felt to be too long, adding to retain costs. The cross docking distribution system is suggested to minimize distribution costs and reduce distribution time. The cross docking distribution system that is suggested is focused on the product distribution inside the distribution central until it is taken to each outlet. Calculation in the cross docking distribution system includes calculation of transportation costs, retain costs, the amount of truck necessities, truck schedules, and the safety stock planning. The designing of the cross docking distribution system simulation is then made, with four scenarios using the Promodel 4 software. This simulation design is made to further understand how the cross docking system will be done and to find out the parameters that effect the system. The calculation results show that the company’s distribution costs are reduced; distribution costs are down by 62% compared to the current distribution cost. The 4 simulation design shows that based on the utility, scenario 3 is better fitting than other scenario. With that result, a cross docking distribution system using scenario 3 is suggested for this company. |