Journal of Emerging Trends in Engineering and Applied Sciences: Research Areas

Article Title: Determinants of Distribution Cost of Sachet Water in a Water Producing Factory in Benin City, Nigeria
by Ogbeide S. O. Ph.D, Omoba Emmanuel Oneshioagbe and Akinlosotu Nathaniel Toyosi

Abstract:
This examined the determinants of distribution cost of sachet water in water producing factory in Edo State (Benin City), Nigeria. Data were obtained from distribution Department of Notre Dame Industrial Company. Data on the distribution cost are extracted from the distribution file of the Company. The distribution cost covers the summation of: fuel cost per truckload, maintenance cost per truckload, loading/off-loading cost per truckload, and personnel cost per truckload. The data collected were analyzed using the Ordinary Least Squares (OLS) regression analysis. The result of the model estimate showed that average years of experience of the driver in years (AYE) has inverse relationship with distribution cost (DC). This implies that increase in years of experience of drivers reduces the distribution cost of water across the various distribution outlets. On the other hand, the traffic delays (TD), average orders at distribution outlets (AOD), average length of route/road network plied per time (ALR), number of distribution outlets covered per location (NDO) and quantity of bags transported per distribution trip (QTP) brought about increase in the distribution cost of sachet or table water. The study recommended that the management of water factories should ensure that parameters such as average orders at distribution outlets, average length of route/road network plied per time, number of distribution outlets covered per location and quantity of bags transported per distribution trip should be put into consideration to minimize distribution cost.

Keywords: Distribution Cost, Sachet Water, Producing Factory

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