The Transportation Problem of a Beverage Industry: A Case Study of Accra Brewery Limited. (ABL)

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Road transport is a predominant means of commuting in Ghana and accounts for high passenger travels and carting of goods in the country, making it a vital transportation service that links the country to others in the entire West African sub-region. Road transport is by far 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. Every business establishment involves production. The production making aspect of the business involves the use of inputs made up of materials, labour, energy and other resources and the generation of outputs of finished goods/products. These production sites are linked by road transport to supply points; managers and organizations require proper tools for decision making so they can be effective in increasing accuracy and quality of decision. In this study, the transportation problem of Accra Brewery Limited (ABL) was considered. Both primary and secondary data from ABL was obtained and modeled as a transportation problem. The Vogel’s Approximation Method (VAM) was used to find the initial basic feasible solution and improved to optimality by the use of the Modified Distribution Method (MODI) using computer software, Quantitative Manager for Windows (QMW). It was observed that, during the lean season, the optimal cost of transportation was GHc50, 576.83 and that of the festive season was GHc86, 853.10. The results showed that there was much difference between the optimal costs of the lean season and that of the festive reason. Because of that it was recommended that during the festive season, the company could produce more and supply most of the products within the same region where they are being produced to ensure minimum cost and increase profits.
A Thesis submitted To the Department of Mathematics, Kwame Nkrumah University of Science and Technology in Partial Fulfillment of the requirement for the degree of Master of Science (Industrial Mathematics), May-2012