Abstract
The importance of VRS in logistics activities of manufacturing companies are well appreciated but need not be over flogged, but rather how this salient issue in Transportation can be more practicable among manufacturing companies. It is in this light that the paper examines and modeled VRS within the context of Total Logistics cost with a view to minimizing cost and enhance effective distribution activities in manufacturing companies. The paper adopted case study approach. Forty-five (45) manufacturing companies formed the sample of the study, based on multi stage sampling techniques that incorporated cluster, stratified and purposive sampling methods. Various VRS components-Labour cost; Transport cost; Maintenance cost, Information cost and others were identified and analysed using adapted distribution function of Cobb-Douglas that incorporates Ordinary Least Square and Weighted Least Square methods. All these components were regressed on the Volume/Quantity of goods distributed. Similarly, translog cost function equally revealed that the parameters in the constrained model are significant, consequently explained a large part of the variation in the data set. The paper recommends that companies should adopt scientific information management system that is information technology in orientation, which will in turn propel VRS as well as lay emphasis on IT investment in attempt to cut cost, simultaneously maintaining customers’ service.
SOMUYIWA, ADEBAMBO OLAYINKA . (2014) Analysis of Vehicle Routine and Scheduling (VRS) Cost in Total Logistics Cost of Manufacturing Companies in Southwestern Nigeria, International Review of Management and Business Research, Volume 3, Issue 3.
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