| The fast economic growth in China has driven a high demand for product oil. As the end segment of the supply chain, product oil logistics and distribution have been attracting more attention from sales companies. For the healthy development of these companies, such acts as cutting costs for efficiency and continuously tapping potential have been put into practice. With the increasing labor costs and exacerbating inflation, a decrease in operation costs is urgently needed for sales companies in order to gain a larger market share. The most effective ways to reduce costs are to optimize the supply chain logistics of product oil and decrease distribution expenses.Product oil logistics and distribution, which accounts for a large percent in the value adding process, is a key part of the operation of PetroChina Company Ltd., Gansu Sales Company. However, due to various limitations in different regions and the imperfection in the existing distribution system, many problems, such as low vehicle turnover in the second distribution of product oil, unreasonableness in transportation allocation, and roundabout transportation have frequently occurred, leading to high transportation costs and low profitability. The thesis analyzes problems and drawbacks existing in the second distribution of product oil in PetroChina Company Ltd., Gansu Sales Company. It uses Shortest-path Model, Transportation Model, Assignment Model, Savings Algorithm and Queuing Theory by reference to both domestic and international research findings, to put forward some ways of optimizing the second distribution of product oil. Lanzhou Branch is selected for empirical analysis.This thesis is aimed at resolving such problems as unreasonable transportation routes, low vehicle operation efficiency, unscientific transportation allocation and high transportation costs in PetroChina Company Ltd., Gansu Sales Company. Meanwhile, it affords other sales enterprises lessons that would improve product oil logistics and distribution. |
