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
2.0 Forecasting Supply
Evaluating Storage Facilities