Utilization of groundwater for the bottled water industry by minimizing fixed and variable cost

Abstract

Water is a class of renewable natural resources. The main source of water is the rain that will always come during its season along the year. The water flows and moves (on the ground and underground) and then will stay at a retention (storage) area. There are two kinds of the retention that are natural retention (such as concave areas, lake, and low places) and artificial retention (such as saving water, well, basin, and watershed). The presence of the watershed in a region will affect the availability of water resources. A region which has watershed could use groundwater resources to fulfill the water requirements for household, agriculture, industries, tourism, and electric power station sectors. The bottled water industry (BWI) is normally built around a watershed area so that it can use the resource of water from the spring. But a problem would arise whenever the industry decided to increase the production capacity. This research addressed the problem of determining an optimal composition on water resources for the above-mentioned industry in ordered to minimizing the total cost. There are four alternatives to utilized groundwater around the watershed. Each water resource alternative has different cost characteristics. The cost can be classified to fixed and variable cost. This problem is modeled as a mixed integer linear programming problem and solved using a branch and bound method. This model is implemented at PT Tang Mas Cidahu in Kampung Bojong Pari Desa Jaya Bakti Kabupaten Sukabumi, West Java.