A Research On Optimization Strategy Of Oil Products Distribution By Sinopec Beijing Oil Products Sales Company

Logistics distribution and optimization has long been the focus in the research of supply chain management. To build and improve the system of oil products distribution should be one of the important approaches to improve the competitive ability of SINOPEC. The study on primary and secondary distribution of oil products possessed both practical and theoretical significances.Based on the theories of supply chain and logistics distribution, the factors ,which affect oil products distribution, such as consumer demand, mode of transport, inventory, and information systems, were analyzed; a combined optimization model of primary and secondary distribution based on the transportation cost was built. An empirical study at the SINOPEC Beijing Oil Products Sales Company was also conducted.It was found that a combined optimization model of oil products distribution based on minimizing transportation cost was built. the simplified model was attained according to balance and imbalance conditions between supply and demand, The extension model was applied to different comparison scenarios in terms of mode of transport, oil depot layout and transit capacity; the combined primary and secondary distribution strategy reduced effectively the total cost of logistics compared to independent distribution strategy. In addition, the secondary logistics costs had a greater impact on the total cost in the combined optimization approach, and the transit capacity of oil depot was a major flexible factor in the optimization.Based on the research results of this work, some suggestions were made for improving the implementation of combined distribution strategy as references in the reform of the SINOPEC Beijing Oil Products Sales Company.