This paper proposes a model of integrated supply chain network for allocating subsidized Liquefied Petroleum Gas (LPG) in a closed distribution system. Subsidized LPG is selected as a case study due to its specific product in Indonesia. Since 2007, the Indonesian government makes policy, namely energy conversion from kerosene to LPG. The main purpose of converting kerosene to LPG is to reduce subsidies on fuel oil. The distribution system consists of several filling stations, distributors and retailers. Currently, the distribution of subsidized LPG, does not flow smoothly because there will be a shortage or excess tubes in retailers mainly because it uses a closed distribution system. A closed distribution means that people who are eligible to buy subsidized LPG will be given a card for identifying them as a legal receiver of the LPG. The model is developed using mathematical approach with reference to previous transshipment study. Based on the developed model and by using a numerical example as a case study, the allocation of LPG from filling station to the distributors and from the distributor to the retailers with minimum distribution costs can be determined. LPG in some specific retailers is supplied by only one distributor which is authorized to distribute subsidized LPG on the retailers. However, this model has limitations to arrange the route filling and distribution route.
| Published in | Automation, Control and Intelligent Systems (Volume 3, Issue 5) |
| DOI | 10.11648/j.acis.20150305.16 |
| Page(s) | 95-99 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Supply Chain Network, Subsidized LPG, Closed Distribution System
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APA Style
Amelia Santoso, Dina Natalia Prayogo, Joniarto Parung. (2015). Integrated Supply Chain Network Model for Allocating LPG in a Closed Distribution System. Automation, Control and Intelligent Systems, 3(5), 95-99. https://doi.org/10.11648/j.acis.20150305.16
ACS Style
Amelia Santoso; Dina Natalia Prayogo; Joniarto Parung. Integrated Supply Chain Network Model for Allocating LPG in a Closed Distribution System. Autom. Control Intell. Syst. 2015, 3(5), 95-99. doi: 10.11648/j.acis.20150305.16
AMA Style
Amelia Santoso, Dina Natalia Prayogo, Joniarto Parung. Integrated Supply Chain Network Model for Allocating LPG in a Closed Distribution System. Autom Control Intell Syst. 2015;3(5):95-99. doi: 10.11648/j.acis.20150305.16
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Download@article{10.11648/j.acis.20150305.16,
author = {Amelia Santoso and Dina Natalia Prayogo and Joniarto Parung},
title = {Integrated Supply Chain Network Model for Allocating LPG in a Closed Distribution System},
journal = {Automation, Control and Intelligent Systems},
volume = {3},
number = {5},
pages = {95-99},
doi = {10.11648/j.acis.20150305.16},
url = {https://doi.org/10.11648/j.acis.20150305.16},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.acis.20150305.16},
abstract = {This paper proposes a model of integrated supply chain network for allocating subsidized Liquefied Petroleum Gas (LPG) in a closed distribution system. Subsidized LPG is selected as a case study due to its specific product in Indonesia. Since 2007, the Indonesian government makes policy, namely energy conversion from kerosene to LPG. The main purpose of converting kerosene to LPG is to reduce subsidies on fuel oil. The distribution system consists of several filling stations, distributors and retailers. Currently, the distribution of subsidized LPG, does not flow smoothly because there will be a shortage or excess tubes in retailers mainly because it uses a closed distribution system. A closed distribution means that people who are eligible to buy subsidized LPG will be given a card for identifying them as a legal receiver of the LPG. The model is developed using mathematical approach with reference to previous transshipment study. Based on the developed model and by using a numerical example as a case study, the allocation of LPG from filling station to the distributors and from the distributor to the retailers with minimum distribution costs can be determined. LPG in some specific retailers is supplied by only one distributor which is authorized to distribute subsidized LPG on the retailers. However, this model has limitations to arrange the route filling and distribution route.},
year = {2015}
}
TY - JOUR T1 - Integrated Supply Chain Network Model for Allocating LPG in a Closed Distribution System AU - Amelia Santoso AU - Dina Natalia Prayogo AU - Joniarto Parung Y1 - 2015/12/01 PY - 2015 N1 - https://doi.org/10.11648/j.acis.20150305.16 DO - 10.11648/j.acis.20150305.16 T2 - Automation, Control and Intelligent Systems JF - Automation, Control and Intelligent Systems JO - Automation, Control and Intelligent Systems SP - 95 EP - 99 PB - Science Publishing Group SN - 2328-5591 UR - https://doi.org/10.11648/j.acis.20150305.16 AB - This paper proposes a model of integrated supply chain network for allocating subsidized Liquefied Petroleum Gas (LPG) in a closed distribution system. Subsidized LPG is selected as a case study due to its specific product in Indonesia. Since 2007, the Indonesian government makes policy, namely energy conversion from kerosene to LPG. The main purpose of converting kerosene to LPG is to reduce subsidies on fuel oil. The distribution system consists of several filling stations, distributors and retailers. Currently, the distribution of subsidized LPG, does not flow smoothly because there will be a shortage or excess tubes in retailers mainly because it uses a closed distribution system. A closed distribution means that people who are eligible to buy subsidized LPG will be given a card for identifying them as a legal receiver of the LPG. The model is developed using mathematical approach with reference to previous transshipment study. Based on the developed model and by using a numerical example as a case study, the allocation of LPG from filling station to the distributors and from the distributor to the retailers with minimum distribution costs can be determined. LPG in some specific retailers is supplied by only one distributor which is authorized to distribute subsidized LPG on the retailers. However, this model has limitations to arrange the route filling and distribution route. VL - 3 IS - 5 ER -
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