Locating and Sizing Plants for Bottling Propane in South India

Shri Shakti LPG Ltd. (SSLPG) imports and markets propane (referred to as liquefied petroleum gas (LPG) in India) in south India. It sells LPG in packed (cylinder) form to domestic customers and commercial establishments through a network of dealers. Dealers replenish their stocks of filled cylinders...

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Bibliographic Details
Published in:Interfaces (Providence) 1997-11, Vol.27 (6), p.1-15
Main Authors: Sankaran, Jayaram K, Raghavan, N. R. Srinivasa
Format: Article
Language:English
Subjects:
Annuals
Bottling
Capital costs
Cylinders
Economic size
Energy
Energy industry
Energy sources
facilities/equipment planning discrete location
Fixed costs
Gas
India
industries petroleum/natural gas
Integer programming
Liquefied petroleum gas
Location analysis
Location of industry
LPG
Natural gas
Operations research
Petroleum industry
Propane
Sales taxes
Studies
Towns
Transportation costs
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Summary:Shri Shakti LPG Ltd. (SSLPG) imports and markets propane (referred to as liquefied petroleum gas (LPG) in India) in south India. It sells LPG in packed (cylinder) form to domestic customers and commercial establishments through a network of dealers. Dealers replenish their stocks of filled cylinders from bottling plants, which in turn receive LPG in bulk from the cheaper of SSLPG's two import-and-storage facilities that are located on the Indian coast. We implemented integer programming to help SSLPG decide on the locations and long-run sizes of its bottling plants. We estimate that our recommended configuration of bottling plants is about $1 million cheaper annually than the one that SSLPG had initially planned.
ISSN:0092-2102
2644-0865
1526-551X
2644-0873
DOI:10.1287/inte.27.6.1