LINEAR PROGRAMMING MODEL OF PRODUCTION, INVENTORY AND DISTRIBUTION PROBLEM BASED ON RANDOM SAMPLING

  • C. O. Njoku
  • Anthony Victor Gambo Ahmadu Bello University, Zaria
Keywords: Optimization, Decision variables, Constraints, Linear programming

Abstract

A linear programming model using the random sampling technique was used for the optimization of the products in the production line of Nigerian Bottling Company (NBC), Lagos, which has many production facilities and multi-products systems. Products from the company are distributed to a number of depots across the country of which the demand for each product is known. The problem of interest involves determining what product/s should be made, how much of each product should be produced and where production should take place. The objectives of the company are to minimize the total cost as well as maximize the total sales revenue based on the set of decisions including demands, capacity restriction and budget constraints. Linear Programming software solver (LiPs) was used to solve large linear programming problems based on the mathematical model developed. The model improved the profit of the company under study by 5%.

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Published
2022-09-03
How to Cite
NjokuC. O., & GamboA. V. (2022). LINEAR PROGRAMMING MODEL OF PRODUCTION, INVENTORY AND DISTRIBUTION PROBLEM BASED ON RANDOM SAMPLING. FUDMA JOURNAL OF SCIENCES, 6(4), 226 - 231. https://doi.org/10.33003/fjs-2022-0604-933