Production Planning Strategies and Operational Cost Management of Selected Food and Beverage Enterprises in Akwa Ibom State, Nigeria

This research work examined the effect of production planning strategies on operational cost management of selected food and beverage enterprises in Akwa Ibom State. One main objective and five specific objectives were developed for the study and were accompanied by five research questions and five research hypotheses respectively. Related literature was reviewed and descriptive survey design was employed in the study. The population of this study was 353 workers from seven (7) food and beverage enterprises operating in Akwa Ibom State and consisted of members of management and other senior staff whose job description have direct link with production and cost management. The sample size was 187 workers (respondents) selected using convenient and purposive sampling methods. Questionnaire was the instrument for data collection and was researcher-structured and also subjected to validation and reliability tests. Research hypotheses were tested at 0.05 level of significance. The researcher employed linear regression analysis technique via SPSS V21. From the hypotheses tested, findings showed that four production planning strategies namely assemble-to-order strategy, level production strategy, chase production strategy and just-in-time strategy all have significant effect on operational cost management of food and beverage enterprises in Akwa Ibom State. On the other hand, make-to-stock (a production planning strategy) has no significant effect on operational cost management based on the findings. In conclusion, production planning strategies boost food and beverage production vis-à-vis operational cost management in Akwa Ibom State. Five recommendations were made and most importantly, food and beverage enterprises should review their production planning strategies to accommodate assemble-to-order, level production, chase production and just-in-time.