A SYSTEM MODEL FOR DEVELOPING PLANT BUILDING LAYOUT OF AN INDUSTRIAL PARK IN A DEVELOPING ECONOMY

Abstract

Gross Domestic Income (GDI) of any government must be a great concern to any administration. Generating income and taxes are to be the cheapest source of revenue for any government which can be achieved handsomely via Industrial Park development. This research developed a system model that enables allocation of land space to every proposed industry, consistent allocation with the constraints has produced the highest annual revenue to the investor through land leasing and taxes. Development plan for land allocated space was grouped into two: Plant Building Layout as 70% and Supporting Layouts as 30%. The supporting layouts percentages were recreational centers as 4%; cars and lorry parks as 10%; commercial centers as 5%; and utilities and service stations as 11%. Strategic decisions which are annual revenue from labour force spending pattern; utility and service charges; tax on Industrial Production and Plant Building Area to be leased for industries were formulated as the objective function. The objective function was optimized under Industrial Park constraints which are capital investment, labour force, utility and service levels, available acreage, as well as maximum and minimum plant building area. Data were collected from five industries for the formulation of Linear Programming (LP) model with tractable objective function and the critical twenty-three constraints. The formulated LP model equations were solved through simplex method. A Computer Algorithm was developed for the model and implemented using JAVA programming language. From the results of the analysis, the Maximum Annual Income for the five proposed industries in the park was estimated as ₦14,417,340,953.82 (USD: $34,740,580.61 at a forecast exchange rate of 415) with varied optimum Plant Building Areas. The optimum total land area for the five industries considered was 7.55 acres. The unused land space for future expansion was 292.47 acres. Labour Utilization, Utility and Service Levels were within capacity limits for the Industrial Park. Since the optimized Investment Cost is ₦283,940,000.00 (USD: $684,192.77), hence the result revealed that there is a good savings of ₦316,060,000.00 (USD: $761,590.36), 52.67% from the entire ₦600,000,000.00 (USD: $1,445,783.13) budgeted as investment cost for plant buildings. The balance was proposed for procuring infrastructural facilities. The highest equivalent land space difference in Naira between the optimized area of land and actual site area was ₦2,474,000.00 (USD: $5,961.44) for Lawal Obelawo Plastic Pipe Industry while the minimum equivalent in naira was ₦448,000.00 (USD: $1,079.52) for Abiola Electrical Machinery Company. The result exposed that more revenue can be generated by the investor under land leasing arrangement than permanent acquisition. Comparingly, Initial Capacities for Utility and Service Levels and Optimized Capacities were significant which can be used for future expansion. The Industrial Park highest optimized value for labour utilization was 191 for unskilled labour which gave a reduction value of 209 while the minimum was 22 for manager labour type with a reduction value of 8. From all the results, it is inferred that the statistical evaluations showed that the model developed can maximize profit for all the industries in a park.