EVALUATION OF DISTRIBUTION MECHANISM IN SOME VEGETABLE OIL COMPANIES IN NIGERIA.

AUTHOR: OPARA UCHECHUKWU VICTOR  (M.ENG)

AFFILIATION: DEPARTMENT OF MECHANICAL ENGINEERING

FEDERAL UNIVERSITY OF TECHNOLOGY OWERRI,                                                  NIGERIA

This research work evaluates the distribution mechanism in some vegetable oil companies in Nigeria: namely, RIVOC Port-Harcourt, CAMELA vegetable oil Company Owerri and KEN oil Owerri. The distribution performance measures evaluated are: capacity utilization, backorder probability, product flexibility and minimum cost of product distribution to the various customers. The products under investigation in RIVOC are: vegetable oil, toilet soap, washing soap and detergent. The results obtained for the period under investigation indicate considerable capacity utilization of (51.57%, 81.65%, 56.19% and 54.94%) respectively of the warehouse for the various products. The backorder probability of (0.2052, 0.1609, 0.1647, 0.2089) shows that the company will run out of stock throughout the period under investigation. Also, the product flexibility of (28.84% 30.99%, 80.96%, and 11.76%) obtained is a clear indication that the distribution mechanism cannot respond to demand fluctuations. In CAMELA, and KEN, the products investigated are vegetable oil and palm kernel cake (PKC). The capacity utilization for the vegetable oil are (45% and 47%), backorder probability (0.2437 and 0.3367), volume flexibility (99.9% and12.1%) respectively.

 

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