Transportation Problem Modelling for Distribution Efficiency in the Fast-Moving Consumer Goods Sector in Lagos

This study examines the application of the transportation problem model to optimize the distribution network of a fast-moving consumer goods (FMCG) company operating multiple warehouses and retail outlets across Lagos State, South West Nigeria. Lagos, as Nigeria's commercial hub, presents a complex logistics environment characterized by heavy traffic, numerous distribution nodes, and high demand variability across districts. Primary data were collected from a leading FMCG distributor with three warehouses and fourteen retail destinations. Using Vogel's Approximation Method (VAM) and the Modified Distribution (MODI) method, the study determines the optimal shipping plan that minimizes total transportation cost. The initial solution obtained via VAM is refined iteratively using MODI until optimality is confirmed. Results indicate a potential cost reduction of approximately 22 percent compared to the company's existing routing plan, which relies primarily on driver experience rather than quantitative models. The study also incorporates traffic-adjusted time windows to make the model more realistic. Sensitivity analysis reveals that cost savings are robust under moderate demand and supply fluctuations. Recommendations include quarterly model updates as demand patterns shift and the integration of basic logistics software to operationalize the transportation model. This research contributes practical insight into how Nigerian FMCG distributors can leverage operations research to address urban supply chain inefficiencies. Keywords: transportation problem, distribution optimization, FMCG, Lagos State, logistics