ABSTRACT
In the Nigerian Bottling Company, Production planning has a fundamental role to play. In this study, the particular scenario considered concerns the Nigerian Bottling Company (NBC) with many production facilities and multi-products production systems. The Products are being distributed to a number of depots at which the demand for each product is known. The problem of interest involves determining what products should be made, how much of each product should be produced, and where production should take place. The objectives of the company are to minimize the total cost of operations as well as maximizing the total sales revenue based on the set of decisions, including demands, capacity restriction and budget constraints. The model, which consists of eighty-eight (88) variables and fifty-four (54) constraints is solved using a linear programming software known as Linear Programming Solver. The results show that production without the optimization principle gives a profit margin of five billion, forty two million, four hundred and thirty one thousand, two hundred naira (-N-5,042,431,200.00K) while production with the optimization principle gives a profit margin of five billion, sixty six million, eight hundred and ninety thousand naira (-N-5,066,890,000.00K). The model improved the profit of the company under study by -N-24,458,800 and reduced the Production, Inventory and Distribution (PID).