Optimal location of distribution center for Liquefied Petroleum Gas - Using Floyd?s shortest route algorithm (A case study: Brong Ahafo Region of Ghana)

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2014-10-30
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Abstract
Liquefied Petroleum Gas demand in Ghana has grown steadily since the LPG promotion program in early 1990’s. The country currently has no downstream LPG Distribution Centers (depots) in any of the ten regions, apart from the primary storage facility located at the TOR. This results in long queues and delay during rush period even when there may be gas in storage. The LPG filling stations in the country get their supply from Tema with little regard for travel cost. In this thesis, a mathematical model for the determination of cost effective distribution center for Liquefied Petroleum Gas (LPG) is constructed. It involves using the Floyd’s Shortest – Route Algorithm for all pairs shortest-path-network problem and distribution center site selection model. The study revealed that an amount of GH¢5580.00 and GH¢13424.00 would be spent in the cost-effective site and most expensive site respectively. It also established that locating distribution center at Techiman, the cost-effective location could save TOR an amount of GH¢6783.00 on every distribution. Among the recommendations offered was that since the model minimizes distribution cost, thereby increasing the savings, TOR and other institutions planners could adapt the model in deciding where to site a distribution center.
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A thesis submitted to the Department of Mathematics, Kwame Nkrumah University of Science and Technology in partial fufillment of the requirement for the degree of MSc Industrial Mathematics.
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