The Transportation Problem: Case Study of Coca Cola Bottling Company Ghana

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Road transport is predominant means of commuting in Ghana and accounts for high passenger travels and carting of goods in the country, marking it a vital transportation service that links the country to others in the entire west African sub-region. Road transport is by the dominant carrier of freight and passengers in Ghana’s land transport system. It carries over 95% of all passenger and freight traffic and reaches most communities, including the rural poor and is classified under three categories of trunk, urban and feeder roads. Transportation is the physical distribution of resources from one place to the other, to meet specific set of requirements. The objective of this study is to model the distribution of Coca Cola products as a transportation problem and to minimize the transportation cost in order to increase profit on sales. The transportation Problem was formulated as liner programming mathematical model and solved by management scientist software to generate an optimal solution. The observation was that if Coca Cola implement the proposed supply and demand changes it will help in decreases transportation cost to GH¢133670.3 Ghana cedis. This transportation model will be useful for making strategic decisions by the logistics managers Coca Cola Bottling Company LTD in making optimum allocation of the production from the two plants (ACCRA and KUMASI) to the various customers(key distributors) at a minimum transportation cost.
A Thesis submitted to the Department of Mathematics, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Science in Industrial Mathematics, Institute of Distance Learning. 2013