Transportation Management Model of a Pharmaceutical Manufacturing Firm

Abstract:

The study utilized a model of linear transportation to locate the base expense of moving pharmaceutical products from the manufacturing plant (distribution centers) to various branches (request or demand area). The information was analyzed using QM software 2013. Consequently, the examination shows that the Northwest corner technique was ₦292,750, 000, the minimum cost technique was ₦273,500, 000 and Vogel’s estimation technique was ₦230,000 000. Based on the outcome Vogel’s estimation technique was a proficient technique due to lower cost. The modified distribution method(MODI) was utilized to optimize the techniques to arrive at a final feasible output of ₦230,000,000. The transportation model will enable the organization to distribute pharmaceutical products optimally at a transportation cost of ₦230,000 000 via an optimal route.