Distribution Network Design for Central Kitchen Expansion: A Decision-Making Case Study of Toko Bakmi Kita

Multi-outlet food-service companies face growing logistics complexity as they expand, yet few studies integrate logistics cost analysis, capacity planning, and multi-criteria decision-making into distribution network design for small and medium-sized food-service enterprises in Indonesia. This study aims to determine the appropriate distribution network design to support Toko Bakmi Kita's expansion from one to ten outlets by 2029. As the existing Central Kitchen (CK) in Serang is projected to exceed its capacity, this research evaluates four alternative distribution network models by integrating financial and non-financial criteria. The study employs an explanatory single-case study design that integrates capacity analysis, logistics cost optimization, spatial analysis, and multi-criteria decision-making (AHP). The ten-outlet network requires 382.21 m² of CK production area and 140.00 m² of CK storage area. From a cost perspective, Scenario 3 (Optimal CK–Direct) is the most efficient, with a total logistics cost of approximately Rp2.08 billion per month and Rp181,464.28 per kilogram, a 2.05% saving over the baseline; demand variation has the greatest effect on cost. However, AHP identifies Scenario 2 (Existing CK–Hub) as the preferred overall alternative (priority 0.395048), because Service and Product Quality, Supply Reliability, and Supplier Proximity together account for more than 80% of the decision weight. The study presents an integrated decision-support framework for distribution network design in a small- to medium-sized Indonesian food-service company. By combining a cost-efficiency benchmark with multi-criteria evaluation, the study offers practical guidance for expansion decisions in Indonesian food-service SMEs and contributes an integrated, replicable framework to the limited literature in this context.