Operations Research and Optimization in Industrial Systems Design: A Contextual Review of the Nigerian FMCG Sector
Abstract
The Nigerian Fast-Moving Consumer Goods (FMCG) sector operates in a complex and volatile environment characterized by infrastructural deficits, fluctuating demand, and intense competition. In such a landscape, the adoption of systematic, data-driven decision-making frameworks is not merely advantageous but essential for survival and growth. Operations Research (OR) offers a suite of quantitative techniques designed to optimize complex operational systems. Objective: This paper provides a comprehensive contextual review of the application of Operations Research and optimization models within the Nigerian FMCG sector. It aims to synthesize potential applications, assess the readiness of the sector for such advanced techniques, and identify the critical barriers to their widespread adoption. Methods: The study employs a descriptive review methodology, drawing upon a wide range of academic literature, industry reports, and theoretical models. It analyzes core OR techniques—including Linear Programming, Inventory Models, and Vehicle Routing Problems—and contextualizes them within the typical operational challenges faced by Nigerian FMCG firms. Results: The review finds that OR models hold significant potential for enhancing efficiency in production planning, inventory management, logistics, and distribution within the sector. For instance, illustrative models demonstrate how optimal resource allocation can maximize profits and how inventory models can minimize holding costs. However, the full realization of these benefits is hampered by significant challenges, including data integrity issues, technological infrastructure gaps, a shortage of technical expertise, and external macroeconomic instability. Conclusion: Operations Research is a powerful, yet underutilized, tool for achieving operational excellence in the Nigerian FMCG sector. To bridge the current gap, manufacturers must prioritize strategic investments in data management systems, workforce capacity building, and academic-industry collaborations. Future research should focus on developing hybrid OR-simulation models tailored to Nigeria's unique constraints and exploring the integration of Artificial Intelligence with traditional OR methods.
Keywords
Operations Research, Optimization, FMCG Sector, Linear Programming, Inventory Management, Supply Chain, Nigeria, Industrial Engineering.
Citations
IRE Journals:
Isiguzo, Kelechi Promise, Obiukwu, Osita. O, Ekenwa Obed Chima, Onyeso, Godson. E "Operations Research and Optimization in Industrial Systems Design: A Contextual Review of the Nigerian FMCG Sector" Iconic Research And Engineering Journals Volume 9 Issue 5 2025 Page 2256-2267 https://doi.org/10.64388/IREV9I5-1712276
IEEE:
Isiguzo, Kelechi Promise, Obiukwu, Osita. O, Ekenwa Obed Chima, Onyeso, Godson. E
"Operations Research and Optimization in Industrial Systems Design: A Contextual Review of the Nigerian FMCG Sector" Iconic Research And Engineering Journals, 9(5) https://doi.org/10.64388/IREV9I5-1712276
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