Abstract

Every business entity’s primary objective is to maximize profit and satisfy its customers (end users). Since businesses are an integral part of our environment, their operations will be restricted by the environmental factors associated with it. The study seeks to model NAAZO Peki distribution in Tamale Metropolis (TM) as a network flow problem, and to determine the minimum cost of Peki soft drink distribution in the Tamale Metropolis (TM) using Ford-Fulkerson Algorithm. Data on demand and storage capacities of retailers within the metropolis were collected from management of NAAZO and the detailed road network and their corresponding distances sourced from the town and country planning department of the metropolis. Peki distribution within the metropolis was modeled as a network flow problem minimum cost for the annual distribution for the year determined using Ford-Fulkerson algorithm. NAAZO could possibly reduce cost of distribution by up to 58% of minimum cost, that is possible from GH¢1,477,188.30 to GH¢934,487.10.

Key words: Maximum flow, minimum cost, algorithm, Peki distribution.