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Trans Oile

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Summary

The Global Oil Company
The Global Oil Company (Global Oil) is an international producer, refiner, transporter and distributor of oil, gasoline and petrochemicals. Global Oil is a holding company with subsidiary operating companies that are wholly or partially owned. One of these group of subsidiaries is the Far Eastern subsidiary group. This group consists of refineries in Australia and Japan that source crude oil from Borneo and Saudi Arabia. The gas and distillate products are sent to marketing subsidiaries located in New Zealand and the Philippines, as well as distributed locally in Australia and Japan by the subsidiaries. New Zealand and the Philippines also have access to distillate product sourced from the Global Oil Company’s subsidiary located in the United States.

Global Oil has corporate-wide annual plan, which details the pattern of shipments among the various subsidiaries. The plan is not rigid but provides general guidelines and the plan is revised periodically to reflect changing conditions. Within the framework of this plan, the operating companies can make their own decisions and plans. This corporate-wide plan is presently done on a trial and error basis and is developed by the Logistics department of the company. It was recently found that the plan was not utilizing all the resources available within the company; neither was it reflecting the correct operating conditions for the subsidiaries.
This report uses linear programming through LINDO in order to fine tune Global’s Oil corporate plan and concentrates on its Far Eastern subsidiaries as a micro-model of the entire

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