1.0 Background

 

Liquigas Ltd is a distribution company of liquified petroleum gas (LPG), a by-product of natural gas production. Their main supplier is Maui and they top up their supplies as necessary by importing LPG from Australia. Their demand depots are Auckland, Christchurch and Dunedin, with their main storage tank situated in New Plymouth. Inventory management is crucial for ensuring that demand is met on time, whilst keeping costs such as holding costs down. During the course of this project several forecasting methods for supply and demand were developed, with the purpose of providing information for planning purposes in order to avoid stock-outs, thus increasing security of supply. An evaluation of storage facilities was also undertaken, in order to advise on possible options to manage their inventory.

   

                              

Figure 1 - A visual summary of the situation

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2.0 Forecasting Supply

3.0 Forecasting Demand

4.0 Evaluating Storage Facilities