Optimization of Distribution Network of Nigerian Bottling Company PLC Using LINGO
Journal Title: IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE) - Year 2018, Vol 15, Issue 4
Abstract
This research on Optimization of Distribution Network using LINGO was carried out in the Nigerian Bottling Company (NBC) which has many distribution centres all over the country. Three plants and twenty two warehouses within the South-South and South-East region of Nigeria were selected for this study. Model for the distribution problem of the company were developed using linear programming approach. The data collected was analyzed using LINGO programming. The analytical result obtained was thirty billion, nine hundred and three million, nine hundred and fifteen thousand, twenty nine naira, eleven kobo (N30, 903,915,029.11). The actual distribution cost obtained from the company’s annual report is almost equal to this value. The optimization result obtained was (N6, 798,861,306.36) which is the annual distribution cost for the period of six years. When compared with the analytical method N24, 105,053,722.75 (about N4,017508953 per annual) was saved and all the demand was met and all warehouses supplied with demands within their proximity. This showed that about 22% reduction in distribution cost was achieved by optimizing all the distribution cost elements. In addition, the existing situation of the company was improved and a new network system for the company designed. The study recommended the application of this research outcome to other similar companies that intend emulating the benefits in the designed distribution network.
Authors and Affiliations
Engr. Dr. B. E. Okafor, Engr. Dr. I. Nnanna
Keywords
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- EP ID EP438461
- DOI 10.9790/1684-1504042841.
- Views 41
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