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Abstract

The State Company for Vegetable Oils in Iraq faces a fundamental challenge of high transportation costs and inefficiency in distributing products across factories and warehouses to meet growing demand. Accordingly, this study aims to employ operations research methods-specifically linear programming and sensitivity analysis---to design a distribution plan that enhances efficiency and minimizes costs. The methodology involved developing a mathematical model of the transportation problem based on actual data related to supply quantities, demand requirements, and transportation costs between production sources and distribution outlets. The model was solved using WinQSB software to determine the optimal solution. Sensitivity analysis was then conducted to assess the impact of changes in supply, demand, and transportation costs on the stability of the solution. The results showed that applying linear programming led to an optimal distribution plan with a total cost of $1,547,800, representing the lowest possible cost compared to alternative plans. Sensitivity analysis further demonstrated that the model provides flexibility in handling input variations while maintaining effectiveness within specific limits. These findings confirm the effectiveness of operations research in improving the efficiency of transportation and distribution processes in the industrial sector, highlighting its role as a decision-support tool that reduces costs and strengthens organizational competitiveness.

Keywords

Linear programming, Sensitivity analysis, Transportation problem, Vegetable oils

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