Optimization Of Oil Warehouse Location In Cameroon

Oil is found in the Rio Del Rey basin close to Nigeria border,natural gas in the basin extending to the south of Douala with proven reserves sometimes estimated at 400 million barrel and more.Been the fifth producer of petroleum in Sub-Saharan Africa,where the logistics of oil production have been a major input cost contribution of Oil Company(OC),involving movement of finished products from production plant,refinery gate to storage(warehousing).Crude oil is a delicate component,which steadily increasing global demand for oil and its derivatives such as petrochemicals has enabled companies providing these products to reach more customers and increase their market share and profitability.This boom in global demand along with the ease of international trade and the inflexibility involved in petroleum industries,locating,supplying make this all complex and challenging.Cameroon been famous for its oil and gas progressive business,so locating with suitable and optimized warehousing advantages in such country could be tricky Because scenarios and near located areas are suitable for developing such sort of warehouse.A comparative analysis of along with considering the risk factors have been studied.The aimed of this thesis was to optimized warehousing location of oil industry in Cameroon in which the expansion and extraction of crude oil needs opening new facilities as well as optimal facilities where producing,storing,distributing and consequence oil quantities will store to gain effective,optimized,and better network for supplying their oil industry.A company in Cameroon wanted to locate part of its warehousing activity in suitable cities.Accordingly,they have to decide on the region to rent the space in the 3PL warehouses.The chosen site is located at the level of the largest newly passable deep-water pig located in the Douala Kribi area.knowing that oil is very dangerous and explosive hence keeping residents away.Subsequently the micro and macro impact will have a contribution to the fluctuation of transport in direct connection with the country and the other environmental condiments.Meaningful that such type of strategic decision is influenced by planned and functional decisions,where the problem is presented as a facility location issue assimilating production,account,and decisions of distributions.The problem is formulated as a mixed integer linear programming(MILP)model which lessens/minimizes the total cost collected of location,distribution,production,and the cost of inventory.Several constraints particularly to the situation and policy of the company were considered.The thesis content is based on five chapters.The first chapter is introduction which includes the background of Cameroon oil industry,problem statement,justification and rationale of the study,research objectives,research questions and significance of this study.This part has mainly emphasized on the background of oil industry of Cameroon with the problems in it.The second chapter has included the review of past relevant and important studies regarding the oil industry and oil supply chain network.The third chapter is based on the methodology used in this study.Whereas the fourth chapter comprises of the discussion about analysis and results covering the aspects regarding the oil industry and the crude oil supply chain network of Cameroon.After the analysis section,discussion,conclusion and limitations of this study are explained in the fifth chapter.