| An Oil Industry Supply Chain Example | | We project that the target region NJ will need 1000 gallons of product 'y' in October, 2005. | We then ask what alternative routes and modes-of-transportation (truck, train, boat, pipe) | do we have to get that product to the region. Next we ask whether there's a refinery nearby | that can produce the base product for finished product 'y'. With all of that, we finally say | that we need a delivery plan that is optimized to deliver on time, make a profit, and beat the competition. | | However, if there is not enough of product 'y', then, depending on the region and the customers, | product 'x' or 'z' will do as well; they're just variations of 'y' using different additives. | But they'll only do just as well in region NJ for the season including October 2005. | This makes sales projections and marketing more complicated, but also gives us more competitive flexibility. | | You can view, run and change this agent by going to www.reengineeringllc.com, logging in to the | demo ID, and selecting Oil-IndustrySupplyChain1 . | | You can download papers and presentations about this from the page www.reengineeringllc.com . | | Please send comments to internet.business.logic@gmail.com . estimated demand some-id in some-region is for some-quantity gallons of some-finished-product in some-month of some-year for estimated demand that-id some-fraction of the order will be some-product from some-refinery that-quantity * that-fraction = some-amount ------------------------------------------------------------------------------------------------------------------------ for demand that-id that-region for that-quantity that-finished-product we use that-amount that-product from that-refinery estimated demand some-id in some-region is for some-quantity gallons of some-finished-product in some-month of some-year for demand that-id for that-finished-product refinery some-refinery can supply some-amount gallons of some-product for demand that-id the refineries have altogether some-total gallons of acceptable base products that-amount / that-total = some-long-fraction that-long-fraction rounded to 2 place(s) after the decimal point is some-fraction ---------------------------------------------------------------------------------------------------------------- for estimated demand that-id that-fraction of the order will be that-product from that-refinery estimated demand some-id in some-region is for some-amount gallons of some-product in some-month of some-year sum a-num : for demand that-id for that-product refinery some-name can supply some-num gallons of some-product1 = a-total ------------------------------------------------------------------------------------------------------------------------- for demand that-id the refineries have altogether that-total gallons of acceptable base products estimated demand some-id in some-region is for some-quantity gallons of some-finished-product in some-month of some-year in that-month an order for that-finished-product can consist in whole or part of some-base-product in that-month the refinery some-name has committed to schedule some-amount gallons of that-base-product we have some-method transportation from refinery that-name to region that-region ---------------------------------------------------------------------------------------------------------------------- for demand that-id for that-finished-product refinery that-name can supply that-amount gallons of that-base-product estimated demand some-id in some-region is for some-quantity gallons of some-finished-product in some-month of some-year in that-month the refinery some-name has committed to schedule some-amount gallons of that-finished-product we have some-method transportation from refinery that-name to region that-region ------------------------------------------------------------------------------------------------------------------------ for demand that-id for that-finished-product refinery that-name can supply that-amount gallons of that-finished-product for the purpose of this study, the current season is some-season some-month is within the season that-season for production purposes in that-season an order for some-finished-product can be filled with the alternative some-base-product ------------------------------------------------------------------------------------------------------ in that-month an order for that-finished-product can consist in whole or part of that-base-product we have this-method transportation from refinery this-name to region this-region ================================================================================= truck Shell Canada One NJ rail Shell Canada One NJ in this-month the refinery this-name has committed to schedule this-amount gallons of this-product ========================================================================================== October Shell Canada One 500 product-y October Shell Canada One 300 product-x October Shell Canada One 800 product-z October Shell Canada One 10000 product-w in this-season an order for this-product1 can be filled with the alternative this-product2 ========================================================================================== Fall product-y product-x Fall product-y product-z this-month is within the season this-season for production purposes =================================================================== October Fall November Fall December Fall for the purpose of this study, the current season is this-season ================================================================ Fall estimated demand this-id in this-region is for this-quantity gallons of this-finished-product in this-month of this-year ======================================================================================================================== 523 NJ 1000 product-y October 2005