Network Design Model for Fuel Retail
A small chain of gas stations in Brazil intends to expand to new retail locations. Which factors should it consider when locating new stations, in order to better leverage a combination of product prices and transportation costs? This work develops a Linear Optimization network design model in orde...
| Main Authors: | , |
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| Format: | Other |
| Language: | en_US |
| Published: |
Massachusetts Institute of Technology
2018
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| Online Access: | http://hdl.handle.net/1721.1/117611 |
| _version_ | 1811068789094088704 |
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| author | Castro, Fabio Amaral de Mulama, Bonaventure |
| author_facet | Castro, Fabio Amaral de Mulama, Bonaventure |
| author_sort | Castro, Fabio Amaral de |
| collection | MIT |
| description | A small chain of gas stations in Brazil intends to expand to new retail locations. Which
factors should it consider when locating new stations, in order to better leverage a combination of product prices and transportation costs? This work develops a Linear Optimization network design model in order to identify the best locations, supply origins and distribution routes that yield optimized profits. Through the Linear Optimization model and Monte-Carlo simulation, we identify that, by modeling the entire network and the route topographies, the model is expected to deliver profits 7% higher than is the case currently. These factors, however, do not seem to be as significant as station-specific factors such as operating costs, sales volume and price policy – factors beyond the scope of this work. |
| first_indexed | 2024-09-23T08:01:11Z |
| format | Other |
| id | mit-1721.1/117611 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T08:01:11Z |
| publishDate | 2018 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1176112019-04-09T16:09:11Z Network Design Model for Fuel Retail Castro, Fabio Amaral de Mulama, Bonaventure A small chain of gas stations in Brazil intends to expand to new retail locations. Which factors should it consider when locating new stations, in order to better leverage a combination of product prices and transportation costs? This work develops a Linear Optimization network design model in order to identify the best locations, supply origins and distribution routes that yield optimized profits. Through the Linear Optimization model and Monte-Carlo simulation, we identify that, by modeling the entire network and the route topographies, the model is expected to deliver profits 7% higher than is the case currently. These factors, however, do not seem to be as significant as station-specific factors such as operating costs, sales volume and price policy – factors beyond the scope of this work. 2018-09-04T15:38:39Z 2018-09-04T15:38:39Z 2018 Other http://hdl.handle.net/1721.1/117611 en_US application/pdf Massachusetts Institute of Technology |
| spellingShingle | Castro, Fabio Amaral de Mulama, Bonaventure Network Design Model for Fuel Retail |
| title | Network Design Model for Fuel Retail |
| title_full | Network Design Model for Fuel Retail |
| title_fullStr | Network Design Model for Fuel Retail |
| title_full_unstemmed | Network Design Model for Fuel Retail |
| title_short | Network Design Model for Fuel Retail |
| title_sort | network design model for fuel retail |
| url | http://hdl.handle.net/1721.1/117611 |
| work_keys_str_mv | AT castrofabioamaralde networkdesignmodelforfuelretail AT mulamabonaventure networkdesignmodelforfuelretail |