Department of Defense Bulk Petroleum: An Investigation of Inventory Level Determination and Allocation of Storage.
Abstract
This study analyzes the procedures for establishing authorized fuel levels at DoD facilities to determine if present petroleum inventories represent actual needs. Three aspects of the formula that is used by both the Defense Fuel Supply Center and the Air Force in computing peacetime operating stocks were studied. To estimate the effect of costs to the government of various inventory policies, the storage of petroleum was modeled in a linear programming fashion using a transportation model that minimized storage costs. A hypothetical scenario consisting of locations using/storing bulk petroleum was described and subsequently modeled as a transportation problem. The conditions delineating this scenario were then changed to reflect several alternate methods of calculating required inventory levels. The value of the objective function for each of these scenarios was measured against the minimum cost solution of the original conditions to determine the net effect on storage costs.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1978
- Accession Number
- ADA065690
Entities
People
- Craig M. Northrup
Organizations
- Air Force Institute of Technology