Sensitivity Analysis of Road Freight Transportation of a Mega Non-Alcoholic Beverage Industry

Abstract

Re-optimization can be very costly for gathering and obtaining more data for a particular problem, to curb this very expensive investment.  Sensitivity analysis has been used in this work to determine the behaviour of input parameters of the formulated problem. The main goal of the study is to respectively provide, derive, observe, compare and discuss the sensitivity analysis of data that has been optimized using different methods of the optimal solution. The best method, saving the highest percentage of transportation cost, for the formulated problem is determined to be the North-West Corner method. This was carried out by arbitrarily assigning values to the available warehouses to determine the best possible demand and supply cases rather than the initial cases. Thus, more cases are advised to be supplied to FID from the Asejire plant for the optimum reduced value of transportation cost.

Keywords: Sensitivity, Parameters, Transportation Problem.