OPTIMAL SCHEDULING OF PETROLEUM PRODUCTS DISTRIBUTION IN NIGERIA

OPTIMAL SCHEDULING OF PETROLEUM PRODUCTS

DISTRIBUTION IN NIGERIA

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ABSTRACT

One major problem in Nigeria is the persistent scarcity and inequitable distribution of petroleum products even with the establishment of three refineries, many storage depots and pipelines interconnecting them. This paper is applied to the situation in the downstream petroleum sector in order to determine an efficient and equitable distribution of three blends of petroleum products, namely; Premium motor spirit (PMS) Dual purpose kerosene (DPK) and Automotive Gasoline (AGO). For effective distribution, three refineries and seventeen storage depots were considered because of their interconnections with pipelines. The model was formulated as a linear programming problem with 20 constraints and 51 variables and was solved using LINDO Optimization software which uses simplex approach. Post-optimality analysis was performed investigating the effect of varying supply from refineries and demand at storage depots. The optimal solution was obtained for each of the product in the target year “2010” and the result was compared with the result of optimal solution obtained during uncertainty period say “2015”. The study reveals that any variation in supply, demand and transportation cost changes the optimal solution.

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