ABSTRACT

This study is an optimization of cement distribution in the Nigerian cement manufacturing industry with special interest in cement distribution from Unicem and Lafarge factoiy to twelve market locations in the country. The locations of distribution include Calabar, Ugep, Ikom, Uyo, Abakaliki, Umuahia, Aba, Port Harcourt, Enugu, Owerri, Ogun, and Lagos. The latter is to maximize company's profit and customer's satisfaction. The study employed Descriptive research design while primary data were obtained from the cement factory. A transport model was developed to assign an optimum distribution mix of cement products from Unicem and Elephant factory, which formed a broader study scope under Lafarge, to the locations where the products are supplied. The result obtained shows that companies incur cost following the transportation of cement from factories to number of destinations which subsequently affect per unit cost of their product. Additionally, 12 selected locations and well-chosen 38 constraints to represent supply and market conditions, a linearized model structure developed in this study showed an optimum mix allocation of cement and cost reduction of 391,280,000 million Naira monthly.