EFFECT OF LINEAR PROGRAMMING ON INVENTORY MANAGEMENT: EVIDENCE FROM FLOUR MILLS PLC, NIGERIA

This research paper focuses on how linear programming (LP) has impacted inventory management at Flour Mills Plc, Nigeria, one of the largest agro-allied manufacturing companies in the industry that operates under a hostile environment marked by resource shortages, supply chains, and market fluctuations. Data were gathered on 211 employees using the survey research methodology in which a structured questionnaire with a 5-point Likert scale was used. Multiple regression analysis was used to determine the contribution of three variables derived by LP such as the resource utilization rate, slack value, and objective function value to the performance of inventory management. The results indicate that resource utilization rate (β = 0.459, p < 0.001) and objective function value (β = 0.441, p < 0.001) positively and significantly affect inventory management, while slack value (β = 0.070, p = 0.108) has no statistically significant impact. The model explains approximately 71.5% of the variance in inventory management (R² = 0.715). Findings validate the application of operations research concepts and LP to optimize inventory management in risky and resource-constrained manufacturing environments prevalent in emerging economies. The study presents empirical findings from a large Nigerian manufacturing firm, adding to the body of research on LP application in emerging economies. Actionable recommendations are to enhance monitoring of resource usage, enhance use of LP tools, and minimize slack resources for managing flexibility of operations as well as efficiency.