Locating and Sizing Plants for Bottling Propane in South India

Jayaram K. Sankaran and N. R. Srinivasa Raghavan
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Jayaram K. Sankaran: Department of Management Science and Information Systems, University of Auckland, Private Bag 92019, Auckland, New Zealand
N. R. Srinivasa Raghavan: Department of Computer Science and Automation, Indian Institute of Science, Bangalore—560 012, India

Interfaces, 1997, vol. 27, issue 6, 1-15

Abstract: 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.

Keywords: facilities/equipment planning discrete location; industries petroleum/natural gas (search for similar items in EconPapers)
Date: 1997
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