Minimising transportation cost of petroleum products through distribution networks linking depots operated by bulk oil storage and transportation company limited (Bost), Ghana Unsing Transportation Module.

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August, 2010
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The transportation model deals with the distribution of goods from several points of supply (sources) to a number of points of demands (destinations) such that the total transportation cost is minimized. Typical examples include petroleum products distribution system, railways, roadways, telephone system and citywide water system. In transportation model, a transportation table is setup such that the relevant data are summarized conveniently and concisely while observing restrictions regarding supply and requirements. The basic feasible solution for a balanced problem is then found by applying any of following methods such as Northwest Corner Method, Minimum Cost Method and Vogel’s Method. The initial feasible solution is then moved to an optimal feasible solution by using an iterative technique such as Stepping-stone method or Modified Distribution Method. The data collected from the Marine Services, Volta Lake Transportation Company Limited and Bulk Oil Storage and Transportation Company Limited revealed that pipeline is the cheapest mode of transportation of petroleum products in the country. After analyzing the data on the petroleum products distribution network linking all the five petroleum products storage depots located at Eastern, Greater Accra, Ashanti, Northern and Upper East Regions showed that the bulk transportation cost of products can be reduced by 14.16%. Also, two optimal solutions were obtained.
A thesis submitted to the Department of Mathematics, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Science.