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DESIGN AND IMPLEMENTATION OF A PRODUCT DISTRIBUTION USING TRANSPORTATION SYSTEMS

Dept: COMPUTER SCIENCE File: Word(doc) Chapters: 1-5 Views:

Abstract

The study examined the design and implementation of a product distribution using transportation system .The study employed the simplex method as the major way to find an efficient way to minimize cost which is the use to find the feasible solution. This project work focused on a decision model for a real world problem. The problem review itself as a transportation problem where the Coca-cola Bottling Company Benin City, Edo State transport its product from source to destination through intermediate point as a system consisting of multiple retail location with transport operation among retailers. The study also outlined the main concepts of the analysis and design methodology of the proposed system. Tools used in the design of this project are Oracle Java technologies. The fact finding techniques employed in the course of this research is interview, observation of the work environment and related books from online libraries.

 1.1 BACKGROUND TO THE STUDY

Efficient transportation is the hallmark of  industrialized   societies. The transportation sector of most industrialized economies is so pervasive that often there is as failure to comprehend the magnitude of its impact on our way of life (Grant et al, 2006). Transportation moves products and provide added value to customers when the products arrive on time, undamaged, and in the quantities required. In this way, transportation contributed to the level of customer service, which is one of the cornerstone of customer satisfaction and important component of the marketing concept. Transportation is one of the largest logistics cost and may account for a significant portion of the selling price of most of the products. Generally, the efficient management of transportation becomes more important to a firm as inbound and outbound transportation cost increases.

In Edo state, over the past years, fuel prices have increased more than double. This alone put a considerable strain on companies’ budget regarding transportation costs. This application takes care of transportation problems, thereby reducing cost for warehousing, transportation while improving customer service. It significantly improves the distribution of goods from one destination to another. It also improves cash flow, visibility and decision making providing efficient product delivery. This developed software will aid the Coca-Cola Bottling Company as it is a fast and reliable computerized method.

1.2 STATEMENT OF THE PROBLEM

Transshipment problem emanating from transportation is one of the most significant areas of logistics management because of its direct impact on customer service level and the firm’s cost structure. The Coca-Cola Bottling Company is to an extent manually operated and reveals a number of problems.

1. Some retail outlets faces delay in product delivery.
2. High cost of product shipments as a result of inadequate transport schedule.

• Total waste of valuable time

The manual system is quite tedious and can be reduced or eliminated with the introduction of the proposed system.

• AIM AND OBJECTIVES OF THE STUDY

The aim of this project is to develop a product distribution using transportation system for the Coca-Cola Bottling Company, Benin City.

Objectives of this study are as follows:

1. To find optimum transportation schedule.
2. To minimize shipping cost.

• To Determine low cost location

1.4 SIGNIFICANCE OF THE STUDY

This study is primarily aimed at increasing efficiency in product distribution operations, reducing maintenance and running cost, monitoring the supply of goods and its distribution and increase profit in the Coca-Cola Bottling Company.

The new system will among other things help to;

• Maintain accuracy product distribution.
• Improve flexibility.
• Increase efficiency and reliability of the system.
• Provide a user friendly interface.
• Save time, manpower and paperwork.

These, will possibly affect the quality of services rendered to customers

1.5 SCOPE OF THE STUDY

The scope of this study covers the Coca-Cola Bottling Company as a whole, and its customers which include retailers, distributors and the general public.

METHODOLOGY OF THE STUDY

The fact finding methods used in the development of this project is site visit, interview and observation of the work procedure and environment.

 

1.7 LIMITATIONS OF THE STUDY

The following limitations where encountered during the course of this research work:

1. Cost: internet data bundles in Nigeria are quite expensive; as a result, huge financial cost was accrued during the course of this research work.
2. Power: lack of constant power supply was a strong mitigating factor. This is as a result of the problem of inconsistent power supply in the country. It significantly slowed down the pace of the research especially as I have to use a computer system for research and typing.

• Access to information: Gaining access to internet was also difficult as there was frequent breakdown of internet access.

1.8 DEFINITION OF BASIC TERMS

Transportation Problem: is concerned with determining an optimal strategy for distributing a commodity from a group of supply centers, such as factories, called sources, to various receiving centers, such as warehouses, called destinations, in such a way as to minimize total distribution costs.

Transportation Modeling: An iterative procedure for solving problems that involves minimizing the cost of shipping products from a series of sources to a series of destinations.

Shadow Price: this is the estimated price of a good or service for which no market price exists.

Product: an article or substance that is manufactured or refined for sale.

Distribution: Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.