Designing a logistics system to ensure efficient distribution of LPG Energy

Abstract

LPG (liquefied petroleum gas) is a fuel-efficient, high-heat valuable and scarce resource. This research is aimed at designing a logistics system for X Gas Company to ensure efficient distribution of LPG, which begins with the ordering process and ends with the placement of stations in Istanbul-Turkey, taking into account the storage, preparation, loading and delivery operations of X Gas Company. Because gas as energy is a scarce resource, the primary performance indicators are distribution, time, cost, and stocklessness. Thus, the ultimate goal is to increase retailer and consumer satisfaction. The aim of this study is to develop a systematic approach using engineering tools and optimization software. One of the biggest problems in this study is the “Vehicle Routing Problem”. The optimal route was found using an optimization software for the Vehicle Routing Problem and the routing costs were reduced. After the design of the routing system, a decision support system has been submitted in order to respond to future changes related to the current system. Finally, the designed program was run for different scenarios and the results were analyzed. In light of these studies, it has been proven that a high amount of saving improvement is possible within the current system.