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Supply and Distribution Planning Support for Amoco (U.K.) Limited

Author

Listed:
  • Joyce S. Mehring

    (Department of OM/MIS, College of Management Science, University of Lowell, One University Avenue, Lowell, Massachusetts 01854)

  • Milton M. Gutterman

    (Amoco Corporation, 200 East Randolph Drive, Chicago, Illinois 60680)

Abstract

The Supply and Distribution Planning System (SDS), developed for Amoco (U.K.) Limited, is designed to support routine planning of monthly and annual distribution of oil products, periodic negotiations of product exchanges and terminal throughput agreements, and strategic planning for facility location and markets. To support these applications, SDS allows users to specify the products, supply sources, terminals, markets, transport options, and time periods they want to consider for planning and then generates and solves a linear programming model of the specified supply and distribution system. SDS, which can represent supply, terminal operations, and primary and secondary distribution, is one of the few LP models that integrates functional areas in the oil industry. The system is flexible, accurate, and produces relevant reports. However, it was not adopted for routine planning largely because, due to economic conditions, very limited resources were available for implementation. To ensure that a system is used, developers and users must make substantial investments not only in developing it, but in establishing and maintaining a suitable environment for it.

Suggested Citation

  • Joyce S. Mehring & Milton M. Gutterman, 1990. "Supply and Distribution Planning Support for Amoco (U.K.) Limited," Interfaces, INFORMS, vol. 20(4), pages 95-104, August.
    • Handle: RePEc:inm:orinte:v:20:y:1990:i:4:p:95-104
    DOI: 10.1287/inte.20.4.95
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    Cited by:

    1. Frederic H. Murphy, 2005. "ASP, The Art and Science of Practice: Elements of a Theory of the Practice of Operations Research: Expertise in Practice," Interfaces, INFORMS, vol. 35(4), pages 313-322, August.
    2. Oxe, Gerd, 1997. "Reducing overcapacity in chemical plants by linear programming," European Journal of Operational Research, Elsevier, vol. 97(2), pages 337-347, March.

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