DETERMINING THE MINIMUM COST OF PRODUCTS DISTRIBUTION, USING NORTH-WEST CORNER AND LEAST COST MODELS

Abstract

This study is carried out to determine the schedule with the minimum cost for distributing Guinness Malt from two production plants in Ghana to Nine major dealers. The data used for this study is a secondary data. The data were modeled using two Linear Programming models namely; the North-West corner and the Least cost methods. These methods were chosen because of its simplicity and ability to generate good feasible solution without tedious calculations. The findings of the study revealed that the least cost method gave the transportation schedule with the minimum cost. Based on the findings of this study, it is recommended that the transportation scheduled obtained using the least cost method should be followed when distributing products from the two plants in order to minimize cost.