Economic Development Based on a Mathematical Model: An Optimal Solution Method for the Fuel Supply of International Road Transport Activity

Melinda Timea Fülöp, Miklós Gubán, György Kovács and Mihály Avornicului
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Melinda Timea Fülöp: Faculty of Economics and Business Administration, Babeş–Bolyai University, 400591 Cluj-Napoca, Romania
Miklós Gubán: Faculty of Finance and Accountancy, Budapest Business School, 1149 Budapest, Hungary
György Kovács: Institute of Logistics, University of Miskolc, 3515 Miskolc, Hungary
Mihály Avornicului: Faculty of Finance and Accountancy, Budapest Business School, 1149 Budapest, Hungary

Energies, 2021, vol. 14, issue 10, 1-22

Abstract: Due to globalization and increased market competition, forwarding companies must focus on the optimization of their international transport activities and on cost reduction. The minimization of the amount and cost of fuel results in increased competition and profitability of the companies as well as the reduction of environmental damage. Nowadays, these aspects are particularly important. This research aims to develop a new optimization method for road freight transport costs in order to reduce the fuel costs and determine optimal fueling stations and to calculate the optimal quantity of fuel to refill. The mathematical method developed in this research has two phases. In the first phase the optimal, most cost-effective fuel station is determined based on the potential fuel stations. The specific fuel prices differ per fuel station, and the stations are located at different distances from the main transport way. The method developed in this study supports drivers’ decision-making regarding whether to refuel at a farther but cheaper fuel station or at a nearer but more expensive fuel station based on the more economical choice. Thereafter, it is necessary to determine the optimal fuel volume, i.e., the exact volume required including a safe amount to cover stochastic incidents (e.g., road closures). This aspect of the optimization method supports drivers’ optimal decision-making regarding optimal fuel stations and how much fuel to obtain in order to reduce the fuel cost. Therefore, the application of this new method instead of the recently applied ad-hoc individual decision-making of the drivers results in significant fuel cost savings. A case study confirmed the efficiency of the proposed method.

Keywords: optimal fuel supply; cost function; optimization; mathematical programming (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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