Evaluation of optimum service area for bulk depots for petroleum distribution

Abstract

Ceylon Petroleum Storage Terminals (CPSTL) is responsible of distributing fuel throughout Sri Lanka. The fuel is transported from main terminals to bulk depots and subsequently to fuel stations using rail wagons and tank lorries. The costs from the two modes are considerably different and therefore, a need has arisen to optimize the fuel distribution process in order to minimize transportation and operational costs. The optimization has to happen in both the main terminal to bulk depot transportation and subsequent transportation to fuel station. Main terminal to bulk depot transportation consists of finding the optimum usage of rail and road modes and several researches had been done covering optimizing this distribution process. This research will introduce a model to optimize the distribution from bulk depots to fuel stations by optimizing the service area of each bulk depot.