Logistics Model for International Business of Tuna Loin

Abstract

This research aims to build a specific logistics model for tuna loin business based on Central Sulawesi resources as a productive supplier for exportation. Four countries are considered as export destinations. They are Singapore, Hong Kong, Taipei, and Vietnam. We have identified a logistics process in which frozen tuna loin flow from factory to the port of Tolitoli, Palu, Bitung, and Makassar, and from these ports commodities are transported only to one transhipment of Surabaya. The four destinations receive tuna loin from this transhipment. Based on our model, the allocation of tuna loin passing through the port of Tolitoli amounted to 37.9 tons, the port of Bitung and Palu 12.5 tons, and the port of Makassar 12.1 tons. The closer the distance from factory to collector port and from transhipment to export destination, the lower the optimal logistics costs.