Investigative Analysis of Linear Programming Problem to Minimize Transportation Cost in Nigeria Breweries PLC, Ibadan, Oyo State, Nigeria

Transportation plays a key role in enhancing adequate profitability for manufacturers of goods while at the same time creating value for customers’ money in the conveyance of organizational goods from the sources to various destinations. There is a need, therefore, to critically appraise the various transportation techniques that enhance effective and efficient transportation of products from sources to destinations in the best possible way to minimize total cost and enhance the profitability of the Nigerian Breweries industry. Three major transportation techniques (the North West corner method, the least cost method, and Vogel’s approximation method) were evaluated in order to determine the best that produced the total minimum cost of transportation. Findings from the study revealed that Vogel’s approximation gave a better initial solution that reports a smaller transportation cost value than the north-west corner method and the least cost method. The study concluded that Vogel’s approximation is more suitable and appropriate than the north-west corner method least cost method in determining the minimum total cost of transporting products from factories to various destinations. The result of the analysis showed that the allocations of the Vogel Approximation Method will give the optimal transportation cost of the company and is recommended to the company for reduction in transportation with a minimum transportation cost of ₦1,184,599.00