Networking Bost Company Depots to Reduce Cost of Transporting Petroleum Products.

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BOST Company established in 1993 is a Government Institution responsible for transporting and storing petroleum products in Ghana. It has six operational depots; Accra Plains Depot (APD), Kumasi depot situated at Kaase, Buipe depot, Bolgatanga depot, Akosombo depot and Mami-Water depot. APD is an originating Depot with storage capacity of 139,250 cubic meters which is connected by pipelines to Tema Oil Refinery (TOR) and Conventional Buoy Mooring (CBM). TOR is the only refinery in Ghana and has a production capacity of 45,000 barrels a day. CBM is a discharge port at Kpong near Tema where refined petroleum products imported pass through. Transportation of petroleum products from TOR and APD to other depots are mostly carried out by tanker trunks referred to as bulk road vehicles. Road transportation of petroleum products is a means of transporting petroleum products which is expensive and not reliable in terms of time of delivery and safety. The Transportation Algorithm was used to re-network the shipping schedule of BOST Company to reduce the total transportation cost from GHC 804,298.79 to GHC 661,114.19 a day. The Minimum Cost Method (MCM) which is an initial solution method of the transportation algorithm was used to obtain an initial transportation cost of GHC 698,551.23 and was improved to GHC 661,114.19 by the MODI Method.
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the award of Master of Science degree in Industrial Mathematics, .