SUMMARY
Product distribution process is an effort to convey a product of consumer handlebar with a planned and programmed system. Cluster method is a grouping of the nearest market location, then analyzed the location of potential facilities through center of gravity. GVRP (Generalized Vehicle Routing Problem) is one of the algorithms in the cluster method [1]. In the GVRP describes the route determination to minimize the required distribution costs. GVRP is a generalization of VRP, so the point of the graph is partitioned into several sets of specific points, called clusters [2]. In this research, modification of GVRP model for multi-capacity vehicle case can determine the route and minimize the cost of distribution. Taken case on UD. Damai Asih for the distribution of Madura writes batik to 25 districts in East Java. From the results of running using MATLAB 7.8.0 obtained the efficiency of the distribution cost of 8.71% of the initial cost before doing the clustering based on distance and maximum capacity of the car of Rp. 6,969,480.00. After the filtering based on the distance and maximum capacity of the car obtained a cost of Rp. 6.365.500.00. The highest value of efficiency is obtained in cluster four, while the lowest efficiency value is obtained in cluster eight. The existence of cost efficiency is due to the different mileage in the clustering process.