LOGISTICS PLANNING IN THE DOWNSTREAM OIL INDUSTRY

Strategic logistics chain planning is of great importance within the downstream oil industry. Logistics networks originate at refineries and terminate at the final delivery point-the customer. Types of bulk transportation used and the main product classes are described. The business decisions which need to be addressed are stated. A corresponding model is formulated partly in mathematical and partly in qualitative terms. The cost of road vehicle delivery to customers is modelled. The business risks associated with changes to the logistics infrastructure are indicated.