September 2023
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This research aims to provide the best strategic supply chain network design decisions for e-groceries to accommodate growing demand at the minimum cost. The decisions include supply chain network configuration, facility location, and facility capacity at each year in the period of analysis. We use combination approach of k-means clustering and linear programming to cater big dataset of historical demand and number of customers. We use a real case from an Indonesian e-grocery provider. A computer-based mathematical model is built using CPLEX Python API. By optimizing the program, this study concludes the recommendation for the company is to operate facilities at certain capacity level for year 2023–2025, along with the service configuration.