Goal Programming Model for Resources Allocation and Production Planning of Adama Beverages

Abstract

This study concentrated on using goal programming to enhance the production planning and resource allocation of Adama Beverages Limited. Adama Beverages Limited, is a key player in the Nigerian beverage industry, produces a variety of products including sachet water, bottled water, table water, and 20-liter dispenser jars. The goals were to handle the company's major operational difficulties by maximizing profits, minimizing manufacturing costs, and optimizing the use of raw materials. Using information from Adama Beverages, such as production levels, resource availability, and unit costs, a goal programming model that was in line with the business's financial objectives was modelled and examined using the Microsoft Excel Solver. It was found that 35,421 packs of bottled water, 902 jars of water, and 9,071 sachets of water were the ideal production levels. This configuration made full use of raw resources, met profit expectations, stayed within budget, and saved ₦156,486. Sensitivity analysis showed that focusing on the production of bottled and sachet water and prioritizing profit objectives yielded the best results. While higher prices for bottled water decreased profit margins and overall efficiency, sachet water cost reductions greatly increased profitability and raw material efficiency.