The Localization of Trading Fruits: The Case of Transaction between Hatyai and Sadao Area, Songkhla, Thailand
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Abstract
The aim of this research is to examine the optimal solution for facility location of cross docking fruit between Hatyai and Sadao areas in Songkhla Province. The ultimate goal of this analysis is to minimize logistics cost and to identify the best area for setting up the imported fruits market from Malaysia based on Padang Besar- Sadao route. This research has been done by examining imported trading volume of entrepreneurs based on 4 main markets in Hatyai, Songkhla. The tools of this study were composed of 2 parts: quantitative and qualitative which gave priority to the logistics costs by ways of Center of Gravity Method and Exact Center of Gravity Approach respectively. The samples of this research consist of 2 groups. The first group was 80% of entrepreneurs in market places as 51 stores. The second groups were collected from both traders and customers which added up to 30 records.
Upon examination of the hypothetical situation, the results revealed that the specified optimal position was stated at the geographic coordinate as a geodetic latitude of 7.014044 and longitude of 100.469638 which is on the Thaveesup market region, Prathanuthit Road, Hatyai Sub-district, Hatyai District. Based on the solution, this research highlights the importance of the logistics cost minimization which created 9.69% cost saving. Nevertheless, this facility location has a maximum bottom line from qualitative analysis on account of consumer sources and availability.
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