Abstract

SENSITIVITY ANALYSIS ON SOFT DRINKS PRODUCED BY COCA-COLA BOTTLING COMPANY CHALLAWA PLANT KANO

1Lukman L., 2Yusuf M. K. and 3Shehu A. A.

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Abstract Operational research can be viewed as both science and art because it involves both Mathematical techniques as well as success of all the phases that comes before and after the solutions of the mathematical models, these depend largely on creativity and experience of an operational research team. This research paper aimed at a sensitivity analysis (Post Optimality Analysis) on soft drinks produced by Coca-Cola Bottling Company Challawa Plant, Kano so as to formulate a linear programming model and use it to find the effect of the changes in the; profit per unit cost, availability of resources or capacities of production as well as the objective functions on the Linear programming solutions. It also analyzed the behavior of the system with respect to some changes in order to improve the quality and quantity of the company?s production (performance) and also identify and predict the best structure of the future production and seek for the most efficient ways of using the resources available to attain some specified goals which can only be achieved through data analysis. It follows that the maximum profit of soft drinks produced by the company with respect to some changes in their weekly production was found by considering four (4) products produced by the company, which are; Coca-Cola, Fanta Apple, Fanta Orange, Limca and Sprite. Linear Programming Problem was formulated and Iterations were made using Simplex Method followed by the Sensitivity Analysis until an optimal and feasible solutions were obtained, which shows that the company should improve its production on the number of crates of Coca-Cola produced per week so as to make its maximum profit thereby increasing the weekly total profit which will make the company to attain its maximum profit. Keywords: Carbondioxide, Sugar, Treated water, Sensitivity, Simplex method, Slack variables, Artificial variables.

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