Optimization of Transportation Costs in a Multi-Plant Distribution Network: A Linear Programming Approach for the Nigerian Bottling Company

Transportation is one of the largest controllable expenses in the distribution of fast-moving consumer goods. This research aims to minimize transportation costs in the Southeast and South-South region distribution network of the Nigerian Bottling Company (NBC), based on real data from 2014 to 2019. The four-plant, five-depot network has a total capacity of 5,760 truckloads to meet a demand of 5,328 truckloads. An analytical nonlinear programming model for route efficiencies and cost drivers, as well as plant-depot allocations under supply/demand constraints, was developed within a structured optimization framework. The findings indicate that the six-year baseline transportation cost of ₦284,089.68 was minimized to ₦9,633.64 after optimization, leading to a 96.6% reduction in cost and a profit of ₦274, 456. Maintenance and fuel consumption costs constituted 39.20% and 20.50% of the total baseline cost, respectively. Sensitivity analysis (±20% fuel) validates robustness (95.9 - 97.3% of savings retained) and cost-distance correlation (r = 0.8411) emphasizes the impact of infrastructure. The study leads to the conclusion that integrating transportation cost optimization with supply chain cost reduction can be required considerably.