Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria

<!DOCTYPE html>    <html>  <head> <meta charset="utf-8" /> <title>Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria</title>  <link rel="shortcut icon" type="image/ico" href="./data/ijsom/coversheet/favicon.ico" />  <meta name="viewport" content="width=device-width, maximum-scale=1, initial-scale=1, user-scalable=0" />   <meta name="keywords" content="Bakery,Supply chain,Material management,Inventory optimization,Food security" /> <meta name="description" content="The study determined optimum inventory levels for various bakery resources using the bread supply chain network in Onitsha City. Structured questionnaires were administered among bakery factories. The optimum design achieved through the optimization model was compared with the existing systems. Analysis of 90 bakeries with a combined capacity of 3960 revealed that total money N 564,408,477.28 is spent on energy annually. Of this amount, 66.75% is expended annually to meet diesel requirements, while firewood and petrol account for 22.57% and 10.66%, respectively. The results of the ABC analysis show that flour ranks as class A with over 78%, followed by sugar at 13%, whilst the remainder of the ingredients constitutes 9%. High operating costs was identified as a major factor militating against the growth of the sector. Consequently, baked bread is expensive and remuneration is very poor, making the industry less attractive. The implementation of optimization practice adds value leading to savings amounting to N 6,957.51, thus enhancing the supply chain competiveness. The annual supply chain performance measured by inventory turnover shows a frequency of 73 inventory turns. Since the bakeries contribute to ensuring food security, these findings, if implemented, will assuage the rising food insecurity in the nation." /> <meta name="title" content="Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria" /> <meta name="googlebot" content="NOODP" /> <meta name="citation_title" content="Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria" /> <meta name="citation_author" content="Nwanya, Stephen" /> <meta name="citation_author_institution" content="Department of Mechanical Engineering, University of Nigeria, Nsukka, Nigeria" /> <meta name="citation_abstract" content="The study determined optimum inventory levels for various bakery resources using the bread supply chain network in Onitsha City. Structured questionnaires were administered among bakery factories. The optimum design achieved through the optimization model was compared with the existing systems. Analysis of 90 bakeries with a combined capacity of 3960 revealed that total money N 564,408,477.28 is spent on energy annually. Of this amount, 66.75% is expended annually to meet diesel requirements, while firewood and petrol account for 22.57% and 10.66%, respectively. The results of the ABC analysis show that flour ranks as class A with over 78%, followed by sugar at 13%, whilst the remainder of the ingredients constitutes 9%. High operating costs was identified as a major factor militating against the growth of the sector. Consequently, baked bread is expensive and remuneration is very poor, making the industry less attractive. The implementation of optimization practice adds value leading to savings amounting to N 6,957.51, thus enhancing the supply chain competiveness. The annual supply chain performance measured by inventory turnover shows a frequency of 73 inventory turns. Since the bakeries contribute to ensuring food security, these findings, if implemented, will assuage the rising food insecurity in the nation." /> <meta name="citation_id" content="2585" /> <meta name="citation_publication_date" content="2015/08/01" /> <meta name="citation_date" content="2015-08-01" /> <meta name="citation_journal_title" content="International Journal of Supply and Operations Management" /> <meta name="citation_issn" content="23831359" /> <meta name="citation_volume" content="2" /> <meta name="citation_issue" content="2" /> <meta name="citation_firstpage" content="683" /> <meta name="citation_lastpage" content="699" /> <meta name="citation_publisher" content="Kharazmi University" /> <meta name="citation_doi" content="10.22034/2015.2.01" /> <meta name="DC.Identifier" content="10.22034/2015.2.01" /> <meta name="citation_abstract_html_url" content="http://www.ijsom.com/article_2585.html" /> <meta name="citation_pdf_url" content="http://www.ijsom.com/article_2585_eee929d8912a02f4c7ed5acf78aad7d2.pdf" /> <meta name="DC.Title" content="Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria" /> <meta name="DC.Source" content="International Journal of Supply and Operations Management" /> <meta name="DC.Date" content="01/08/2015" /> <meta name="DC.Date.issued" content="2015-08-01" /> <meta name="DC.Format" content="application/pdf" /> <meta name="DC.Contributor" content="Nwanya, Stephen" /> <meta name="og:title" content="Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria" /> <meta name="og:description" content="The study determined optimum inventory levels for various bakery resources using the bread supply chain network in Onitsha City. Structured questionnaires were administered among bakery factories. The optimum design achieved through the optimization model was compared with the existing systems. Analysis of 90 bakeries with a combined capacity of 3960 revealed that total money N 564,408,477.28 is spent on energy annually. Of this amount, 66.75% is expended annually to meet diesel requirements, while firewood and petrol account for 22.57% and 10.66%, respectively. The results of the ABC analysis show that flour ranks as class A with over 78%, followed by sugar at 13%, whilst the remainder of the ingredients constitutes 9%. High operating costs was identified as a major factor militating against the growth of the sector. Consequently, baked bread is expensive and remuneration is very poor, making the industry less attractive. The implementation of optimization practice adds value leading to savings amounting to N 6,957.51, thus enhancing the supply chain competiveness. The annual supply chain performance measured by inventory turnover shows a frequency of 73 inventory turns. Since the bakeries contribute to ensuring food security, these findings, if implemented, will assuage the rising food insecurity in the nation." /> <meta name="og:url" content="http://www.ijsom.com/article_2585.html" />  <link href="./themes/base/front/assets/css/social-icon-font.css" rel="stylesheet" type="text/css" />  <link href="./themes/base/front/assets/plugins/bootstrap/css/bootstrap.min.css?v=0.02" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/header.css?v=0.05" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/footer.css" rel="stylesheet" type="text/css" /> <link href="./inc/css/essentials.css?v=0.2" rel="stylesheet" type="text/css" /> <link href="./inc/css/cookieconsent.min.css" rel="stylesheet" type="text/css" /> <link href="./inc/css/print.css" rel="stylesheet" type="text/css" media="print"/>  <link href="./themes/base/front/assets/plugins/bootstrap/css/bootstrap-ltr.min.css" rel="stylesheet" type="text/css" /> <link href=" ./themes/base/front/assets/css/gfonts-OpenSans.css" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/accordian.css" rel="stylesheet" type="text/css" /> <link href="./themes/base/front/assets/css/academicons.min.css" rel="stylesheet" type="text/css" />  <meta name="google-site-verification" content="UlbWpwabckk_wTgRmzoJCVPEYKnomtCLcftujpXdou4" /> <link href="./data/ijsom/coversheet/stl_front.css?v=0.94" rel="stylesheet" type="text/css" /> <link href="./data/ijsom/coversheet/stl.css" rel="stylesheet" type="text/css" />  <link rel="alternate" type="application/rss+xml" title="RSS feed" href="ju.rss" /> <script type="text/javascript" src="./themes/base/front/assets/plugins/jquery/jquery.min.js?v=0.5"></script> <script type="text/javascript" src="./inc/js/common.js?v=0.1"></script> <script type="text/javascript" src="./inc/js/jquery/cookieconsent.min.js"></script>   <script src="inc/js/article.js?v=0.31" type="text/javascript" ></script> </head> <body class="ltr len"> <div class="container" id="header"> <div class="row"> <div class="col-xs-12 text-center"> <img src="./data/ijsom/coversheet/head_en.jpg" class="img-responsive text-center" style="display:-webkit-inline-box; 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Structured questionnaires were administered among bakery factories. The optimum design achieved through the optimization model was compared with the existing systems. Analysis of 90 bakeries with a combined capacity of 3960 revealed that total money N 564,408,477.28 is spent on energy annually. Of this amount, 66.75% is expended annually to meet diesel requirements, while firewood and petrol account for 22.57% and 10.66%, respectively. The results of the ABC analysis show that flour ranks as class A with over 78%, followed by sugar at 13%, whilst the remainder of the ingredients constitutes 9%. High operating costs was identified as a major factor militating against the growth of the sector. Consequently, baked bread is expensive and remuneration is very poor, making the industry less attractive. The implementation of optimization practice adds value leading to savings amounting to N 6,957.51, thus enhancing the supply chain competiveness. The annual supply chain performance measured by inventory turnover shows a frequency of 73 inventory turns. Since the bakeries contribute to ensuring food security, these findings, if implemented, will assuage the rising food insecurity in the nation.</div> <p class="padding-0" style="margin:12px -2px 0 -2px"><strong>Keywords</strong></p> <ul class="block list-inline list-inline-seprator margin-bottom-6 ltr"> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105096&_kw=Bakery" >Bakery</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105097&_kw=Supply+chain" >Supply chain</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105098&_kw=Material+management" >Material management</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105099&_kw=Inventory+optimization" >Inventory optimization</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=105100&_kw=Food+security" >Food security</a> </li> </ul> <p class="padding-0" style="margin:12px -2px 0 -2px"><strong>Main Subjects</strong></p> <ul class="block list-inline list-inline-seprator margin-bottom-6"> <li class="padding-3"> <a href="./?_action=article&sb=156&_sb=production+%26amp%3B+inventory+management" >production & inventory management</a> </li> </ul> </div> <hr> <div class="page_break"></div> <div class="panel"> <div class="panel-heading card-header"> <h4 class="panel-title "> <a data-toggle="collapse" data-parent="#accordions" href="#collapsesRef"><i class="fa fa-plus"></i> References</a> </h4> </div> <div id="collapsesRef" class="panel-collapse collapse"> <div class="panel-body justify"> <div class="padding-3 margin-top-3 ltr justify">Braucer, D. 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Food Technology, Vol 22, pp. 867- 878. </div> <div class="padding-3 margin-top-3 ltr justify">Koteeswaran, G. P., E. Shayan, R. Rajabpour (2004). Buffer estimation in a mixed-model assembly line.Proceedings of the fifth Asian Pacific Industrial Engineering and Management Systems(APIEMS)conference,pp. 14.5.1-14.5.12.Available www.apiems.net/archive/2004_14.5pdf (accessed 15/10/2013). </div> <div class="padding-3 margin-top-3 ltr justify">Lin, J. S., J. J. R. Ou (2011). A study on supply chain value-added logistics based on the great Chinese market. International Journal of Electronic Business Management, Vol. 9(1), pp. 58-69. </div> <div class="padding-3 margin-top-3 ltr justify">Madu, A. C. (2006), Optimization of energy, manpower and inventory requirement for the bakery industry in Nigeria. M. Eng. Degree project report submitted School of Postgraduate Studies, University of Nigeria, Nsukka. </div> <div class="padding-3 margin-top-3 ltr justify">Nwanya, S. C., A. C. Madu (2013), Inventory Optimization of Bakery Supply Chain for Food Security in Nigeria. International conference of the Nigerian Institute of Industrial Engineers: Industrial Engineering and National Transformation, November 13 – 15, 2013, Owerri, Nigeria. </div> <div class="padding-3 margin-top-3 ltr justify">Nwanya, S. C., R. Taccani, M. Reini (2009), Absorption Refrigeration for Sustainable Food Security in Remote Areas of Nigeria. [Online] available from http://www.rmrdctechnoexpo.org/.../Absorption%20Refrigeration%20sust </div> <div class="padding-3 margin-top-3 ltr justify">Okolie, P. C., E. C. Okafor, E. C. Chinwuko (2010). Optimal production mix for bread industries: a case study of selected bakery industries in eastern Nigeria. Journal of Engineering and Applied Sciences, Vol. 5 (6), 403- 412. Available at www.academia.edu/1376650/optimal (accessed 14/10/2013). </div> <div class="padding-3 margin-top-3 ltr justify">Onwumere, J., A. C. Nwosu, J. A. Nmesirionye (2012). Assessment of the effects of external capital mobilization on the equipment investment of bakery enterprises in South Eastern Nigeria. Int. Journal of Economics and management sciences, Vol. 1 (9), pp. 83-89. </div> <div class="padding-3 margin-top-3 ltr justify">Oyeku, O. M., C.F. Kupoluyi, A.A. Osibanjo, C.U. Orji, F.N. Ajuebor, I.O. Ajiboshin, W.B. Asiru (2008). An Economic Assessment of Commercial Production of 10% Cassava-Wheat Composite Flour Bread. Journal of Industrial Research and Technology Vol. 2 (1), pp. 13-20. Available www.fiiro.org/jdownloads/Published%20Journals/fiiro_jirt03_13-20.pdf (accessed 12/11/2015). </div> <div class="padding-3 margin-top-3 ltr justify">Payne, A. C., J. C. Chelsom, L. R. P. Reavill (1996). Management for Engineers. John Wiley Publishers, New York, pp. 409–430. </div> <div class="padding-3 margin-top-3 ltr justify">Ruteri, J. M., Q. Xu (2009). Supply chain management and challenges facing the food industry sector in Tanzania. International Journal of Business and Management, Vol. 4(12), pp. 70–80. </div> <div class="padding-3 margin-top-3 ltr justify">Vutete, C., N. Bobo (2015). The impact of bakery industry supply chain on the pricing of bread in Zimbabwe. Greener Journal of Business and Management Studies, Vol. 5(1), pp. 1-15. </div> <div class="padding-3 margin-top-3 ltr justify"> </div> </div> </div> </div> </div> </div>   <div class="col-lg-3 col-md-3 col-sm-4"> <div class="panel panel-default my_panel-default margin-bottom-10"> <div class="panel-body ar_info_pnl" id="ar_info_pnl_cover"> <div id="pnl_cover"> <div class="row" > <div class="col-xs-6 col-md-6 nomargin-bottom"> <a href="javascript:loadModal('International Journal of Supply and Operations Management', './data/ijsom/coversheet/cover_en.jpg')"> <img src="data/ijsom/coversheet/cover_en.jpg" alt="International Journal of Supply and Operations Management" style="width: 100%;"> </a> </div> <div class="col-xs-6 col-md-6 nomargin-bottom"> <h6><a href="./issue_460_487.html">Volume 2, Issue 2 - Serial Number 2</a><br/>August 2015<div id="sp_ar_pages">Pages <span dir="ltr">683-699</span></div></h6> </div> </div> </div> </div> </div>  <div class="panel panel-default my_panel-default 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<ul class="list-group list-group-bordered list-group-noicon" style="display:block !important;max-height:9999px"> <li class="list-group-item"><a class="tag_a">Article View: <i>5,130</i></a></li> <li class="list-group-item"><a class="tag_a">PDF Download: <i>20,483</i></a></li> </ul> </div> </div> </div> </div>  </div> </section> <div id="cite-apa" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content">  <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">APA</h4> </div>  <div class="modal-body"> <p>Nwanya, S. (2015). Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria. <em>International Journal of Supply and Operations Management</em>, 2(2), 683-699. doi: 10.22034/2015.2.01</p> </div> </div> </div> </div> <div id="cite-mla" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content">  <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">MLA</h4> </div>  <div class="modal-body"> <p>Stephen Nwanya. "Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria". <em>International Journal of Supply and Operations Management</em>, 2, 2, 2015, 683-699. doi: 10.22034/2015.2.01</p> </div> </div> </div> </div> <div id="cite-harvard" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content">  <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">HARVARD</h4> </div>  <div class="modal-body"> <p>Nwanya, S. (2015). 'Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria', <em>International Journal of Supply and Operations Management</em>, 2(2), pp. 683-699. doi: 10.22034/2015.2.01</p> </div> </div> </div> </div> <div id="cite-vancouver" class="modal fade" tabindex="-1" role="dialog" aria-labelledby="myModalLabel" aria-hidden="true"> <div class="modal-dialog"> <div class="modal-content">  <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="myModalLabel">VANCOUVER</h4> </div>  <div class="modal-body"> <p>Nwanya, S. Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria. <em>International Journal of Supply and Operations Management</em>, 2015; 2(2): 683-699. doi: 10.22034/2015.2.01</p> </div> </div> </div> </div> </div> </div>   <section class="alternate padding-xxs"> </section>   <div class="container"> <footer id="footer"> <div class="scrollup" id="scroll" href="#"><span></span></div> <div class="row"> <div class="col-md-2">  <h4 class="">Explore Journal</h4> <ul class="footer-links list-unstyled"> <li id="fli_home"><a href="./">Home</a></li> <li id="fli_about"><a href="./journal/about">About Journal</a></li> <li id="fli_Edb"><a href="./journal/editorial.board">Editorial Board</a></li> <li id="fli_submit"><a href="./author">Submit Manuscript</a></li> <li id="fli_contactus"><a href="./journal/contact.us">Contact Us</a></li> <li id="fli_glossary"><a href="./journal/glossary">Glossary</a></li> <li id="fli_order_hrdj"><a href="./journal/subscription.form">Hard Copy Subscription</a></li> <li id="fli_sitemap"><a href="./sitemap.xml?usr">Sitemap</a></li> </ul>  </div> <div class="col-md-3">  <h4 class="">Latest News</h4> <ul class="footer-posts list-unstyled"> <li> <a href="./news?newsCode=173">SD of ISC: Sustainable Development of Intelligent Supply Chains based on Trends and Future Directions: Application of Novel Solution Techniques</a> <small class="ltr">2023-03-05</small> </li> </ul>  </div> <div class="col-md-3">  <div><p><a title="Linkedin" href="http://www.linkedin.com/company/ijsom?trk=eml-cp_mktg-btn-welcome-20120607%2F"><img src="images/linkedin.jpg" alt="linkedin" /></a></p></div>  </div> <div class="col-md-4">  <h4 class="">Newsletter Subscription</h4> <p>Subscribe to the journal newsletter and receive the latest news and updates</p> <form class="validate" action="" method="post" data-success="Subscription saved successfully." data-toastr-position="bottom-right"> <input type="hidden" name="_token" value="92b2976b0de45b33be8719c73eb7c407937ef6ea6e1b16d8"/> <div class="input-group"> <span class="input-group-addon"><i class="fa fa-envelope"></i></span> <input type="email" id="email" name="email" required="required" class="form-control required sbs_email" placeholder="Enter your Email" oninvalid="this.setCustomValidity('Enter a valid email address.')" oninput="this.setCustomValidity('')"> <span class="input-group-btn"> <button class="btn btn-primary mybtn" type="submit">Subscribe</button> </span> </div> </form>   <div class="margin-top-20"> <a class="noborder" href="" target="_blank" class="social-icon social-icon-border social-facebook pull-left block" data-toggle="tooltip" data-placement="top" title="Facebook"> <i class="fa fa-facebook-square" aria-hidden="true"></i> </a> <a class="noborder" href="" target="_blank" class="social-icon social-icon-border social-facebook pull-left block" data-toggle="tooltip" data-placement="top" title="Twitter"> <i class="fa fa-twitter-square" aria-hidden="true"></i> </a> <a class="noborder" href="" target="_blank" class="social-icon social-icon-border social-facebook pull-left block" data-toggle="tooltip" data-placement="top" title="Linkedin"> <i class="fa fa-linkedin-square" aria-hidden="true"></i> </a> <a class="noborder" href="./ju.rss" class="social-icon social-icon-border social-rss pull-left block" data-toggle="tooltip" data-placement="top" title="Rss"><i class="fa fa-rss-square" aria-hidden="true"></i></a> </div> </div> </div> <div class="copyright" style="position: relative"> <ul class="nomargin list-inline mobile-block"> <li>© Journal Management System. <span id='sp_crt'>Powered by <a target='_blank' href='https://www.sinaweb.net/'>Sinaweb</a></span></li> </ul> </div> </footer> </div>  </div>   <a href="#" id="toTop_old"></a>  <div id="preloader"> <div class="inner"> <span class="loader"></span> </div> </div>  <script type="text/javascript">var plugin_path = './themes/base/front/assets/plugins/';</script> <script type="text/javascript" src="./themes/base/front/assets/js/scripts.js?v=0.02"></script>   <script type="text/javascript"> $('ul.nav li.dropdown').hover(function() { if (window.matchMedia('(max-width: 767px)').matches) return; 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Material Inventory Optimization in Bakery Supply Chain: Implications for Food Security in Nigeria