KAPSARC has developed an optimization model to characterize the distribution of oil products after the refining stage. The model ensures that the demand for any group of refined oil products is simultaneously met while minimizing the social costs associated with the distribution system. The distribution system moves products from oil refineries or import terminals to petroleum bulk plants using multiple modes of transport. Then, the products are moved from bulk plants to customers via trucking or pipeline transport. In this setting, the customers are potential fuel wholesalers or retailers, such as gasoline stations and liquefied petroleum gas packaging facilities.
