Analysis Of Relationship Between Physical Distribution Cost And Freight Characteristics

This study was necessitated by the need for manufacturing firms to determine the relationship and extent between the cost of distribution of the goods manufactured and the quantity of the goods/ weight of the goods in question which will inturn create a need for a further research to determine the actual ways to optimize the distribution flow so as to reduce wastage and increase revenue. Data was collected by the administration of questionnaire to a total of 107 respondents of two major plants of Unilever Nigeria Plc in the South East zone of Nigeria. Analysis was carried out on the data collected using a regression and correlation to establish the statistical relationship between the dependent variable (distribution cost) and the independent variables X1 and X2 (weight of the goods and the quantity of the goods) respectively. A positive correlation coefficient(r) value of 0.983 was discovered, indicating a high positive relationship between the variable was discovered. Obviously, an increase in the quantity or weight of the goods must lead to an increased cost of distribution. This prompted a need for the further study in determining an optimal solution to cost of distributution in comparison to quantity/ weight of goods distributed.