<![CDATA[The traditional market is a trading entity that supports the Indonesian economy to absorb labor force of 12.5 million spread over 13,450 traders traditional markets. But in the traditional market development driven by the modern market presence is indicated by the decline in the trade share of 2% per year (AC Nielsen, 2011). Policies that have not yet noticed the problem in the traditional markets, namely the long supply chain system and undergo several stages of transfer of ownership. The transfer of ownership will lead to inefficiency of distribution channels, resulting in the increase in distribution costs and the selling price of goods. Commodities white crystal sugar is one of the staples which directly influence the dynamics of price inflation. The impact of supply shortages and inefficient distribution networks creates white sugar white sugar price volatility in the country. The purpose of this research to develop a supply chain network model of traditional markets for commodities white sugar with a case study of West Java. Thesolution model using Integer Linear Programming (ILP) with the help of software Lingo 9.0 version. From the test results the model developed total logistics costs proposed model is Rp. 160.403.940.760, - per year. With the decision to open 9 (nine) distributor, three (3) sub-distributor and seven (7) wholesale. The results of the proposed model lowers the cost of 31% of the existing condition of the distribution network of traditional market after the increase in warehouse capacity by 11%. Meanwhile, when compared with the modern market distribution network which has a total cost of logistics Rp.160.804.298.500,- per year. So the total cost of the proposed lower logistic models.]]>
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