The Vogel Approximation and North West Corner Transportation Models for Optimal Cost Distribution of Dangote Cement

Most industrial and service organizations now include transportation logistics and management in their business decision making process. The cost of transportation and the distribution of goods from manufacturing facilities to depots raise transportation costs, which will ultimately have an impact on the selling price of the product and will then directly or indirectly affect final consumers. Several academic publications had proposed linear programming transportation models for transport logistics problems. Thispaper, models and assesses the performance of the Vogel Approximation and North West Corner transportation models on the logistics of optimal distribution bags of cement of Dangote Cement Company Plc, Nigeria, from some cement facilities, to various depots while minimizing transportation cost. The outcome of this study demonstrated a considerable decrease on the transportation cost of the distribution of the product to various depots as well as simple distribution from plants to depots. The Vogel Approximation model showed a slight improvement on distribution cost reduction by eight thousand, three hundred naira compared to the North-West Corner Rule. At the conclusion of the study, recommendations were given