Optimization of fuel distribution in Bali

Abstract

There are several problems that affect the process of the fuel distribution to the public gas stations and, moreover, those can reduce the company's profit. One of the problems is {/ long queuing of tanker-trucks at the depot. Another related problem with the process of the fuel distribution is the availability of the tanker trucks to cover all the demands from the gas stations. First, the paper discusses the problems at the depot, using the queuing theory; it can be determined whether the number of facilities available at the depot such as the number offilling shed and the parking lot is sufficient enough to avoid the occurrence of the queuing. Second, the problem related to the availability of the trucks is modeled as a set covering problem. The aim is to find the trucks' route of distribution so that minimi:e the operational cost with a constraint limited number of trucks. This paper presents the solution of the fuel distribution in Bali, Indonesia. From the simulation using Visual Basic, the optimal route of the trucks is obtained.