A Transshipment Model of Seven-Up Bottling Company, Benin Plant, Nigeria

Abstract

This research work seeks to model the distribution of 50 cl Pepsi soft drink as a transhipment problem. The transshipment problem is an extension of the traditional transportation problem which takes into account a multi-phase transport system in which the flows of goods and services are taken through an intermediate point (transhipment points) between the origin and the destination with varying objective functions. The main focus in this research was to obtain the minimum cost of transporting 10,000 crates of the product from the Benin plant (source) through deports (transshipment points) to the Sapele-Warri region (sinks) where the product is demanded. Data collected were analyzed using TORA Windows Version 2.00 software. The analysis shows that the minimum cost of transporting the product can be achieved if the product is shipped directly from the source to the sink. This forms that basis for the conclusions and recommendations of the research.