IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ENGINEERING AND MODERN TECHNOLOGY (IJEMT )

E-ISSN 2504-8848
P-ISSN 2695-2149
VOL. 11 NO. 6 2025
DOI: 10.56201/ijemt.vol.11.no6.2025.pg16.26

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Integrated Optimization Model for Industrial Manufacturing Operations Costs

Ezeaku I I, Okafor B, Obiukwu O, Onuoha O, Nwadinobi C P

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Abstract

Optimizing costs associated with manufacturing operations is a critical challenge undergone by manufacturing companies while navigating a fiercely competitive business environment. This research work has introduced application of MILP technique in manufacturing operations costs optimization and decision making. The research was conducted in a manufacturing firm in southern part of Nigeria that has two plants and twenty (20) locations for their products. Within the period under review, the first level/company’s analytical technique which it has been adopting to reduce its manufacturing operations costs was found to be one billion, seven hundred and ninety eight million, six hundred and sixty thousand, seven hundred and thirty naira (? 1798660730.00k). The developed Mixed Integer Linear programming (MILP) technique significantly reduced the company’s manufacturing operations cost to one billion, six hundred and seventy eight million, one hundred thousand, two hundred and forty six naira (?1678100246.00k). The model showed manufacturing operations cost reduction of one hundred and twenty million, five hundred and sixty thousand, four hundred and eighty four naira (?120560484). This accounts for manufacturing operations cost reduction of 7.11% and having all the demand at various locations met from the plant. We believe that this result would be applicable to similar operations.

keywords:

Logistics operations, mixed-integral, cost optimization, inventory, decision making

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