TITLE:
Study on the Transportation Problem of Petrol Secondary Distribution with Considering Shortage Cost
AUTHORS:
Zhenping Li, Chongyu Jiang
KEYWORDS:
Petrol Secondary Distribution, Shortage Cost, Transportation Problem, Mathematical Model
JOURNAL NAME:
Open Journal of Modelling and Simulation,
Vol.4 No.2,
April
19,
2016
ABSTRACT: Petrol is a kind of strategic natural resources. Provide legitimate transportation plans for the petrol secondary distribution are the key links to guarantee the petrol provision. If the total supply is insufficient, some petrol stations can’t avoid shortage because their demands could not be met. So the shortage cost will appear. This paper studies the problem of how to arrange the transportation plan in order to minimize the total cost when the total volume of supply is insufficient. Given the storage volume, the sales rate and the unit shortage cost of every petrol station, considering the full loading constraints of the compartment vehicle, a mixed integer programming model for minimizing the total cost of petrol secondary distribution is established. A Lingo program is compiled for solving the model. Finally, simulation on an example has been done and a reasonable transportation plan is obtained. The model and algorithm in this paper can provide a theoretical basis for dispatching department to make transportation plan.