Capacity Planning and Performance of Brewing Firms in South-South, Nigeria

International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VI, Issue XII, December 2021 | ISSN 2454–6194

Capacity Planning and Performance of Brewing Firms in South-South, Nigeria

Prof. Ezimma Nnabuife, Ndubuisi-Okolo Purity.U. (Ph.D)* and Ohue Paul Itua
Department of Business Administration, Nnamdi Azikiwe University, Awk, Anambra State, Nigeria
*Corresponding Author

Abstract: The broad objective of this paper is to determine the extent of relationship that exists between capacity planning and performance of brewing firms in South-South, Nigeria. Specifically, this study seeks to ascertain the type of relationship between lead strategy and product availability of brewing firms in South-South, Nigeria. The study was anchored on theory of constraint (TOC) postulated by Goldraft (1984). Survey research design was adopted for the study; a total population of three hundred and eighty-three (383) was used for the study. Census sampling method was used for the study because the population is a manageable size. The data collection tool employed by the researcher was the questionnaire, while the analysis of the data was done using the linear regression analysis. Results obtained from the test of hypothesis revealed that the relationship between lead strategy and product availability is significant and positive since (F = 11824.65; R-squared = 0.872; P <.05). Based on the findings, the researcher concluded that there exists a strong significant positive relationship between capacity planning and performance of brewing firms in South-South, Nigeria. Sequel to the conclusion, the researcher recommended that the focused firms should ensure the regular addition of production capacity in anticipation of demand as a result of its effect on product availability.

Key Words: Capacity Planning, lead strategy, performance and brewing firms

I. INTRODUCTION

1.1 Background of the Study

The last few decades have seen brewing firms in Nigeria change their operating models from closed to open systems as a result of the nature of the business environment. This change has necessitated the adoption of different capacity planning strategies that could ensure machine availability, raw material availability, skilled-man power availability, regular update of current technology from time to time so as to ensure product availability (Simoes, Gomes & Basin, 2011). Though the concept ‘capacity planning’ began to gain prominence in the 90s, its root can be traced to the 19th century where modern production planning methods were developed under the scientific management era. In 1996, the American Production and Inventory Control Society (APICS) officially came up with the concept of capacity planning (White, 2000).

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