Document Details

Document Type : Thesis 
Document Title :
Optimization of Fuel Oil Inventory Level at The Saudi Electricity Company Plants in The Western Region
تحديد المستوى الأمثل لمخزون زيت الوقود بمحطات الشركة السعودية للكهرباء بالمنطقة الغربية
 
Subject : Faculty of Engineering 
Document Language : Arabic 
Abstract : This study concerns with fuel oil inventory level problem at Saudi Electricity Company Power Plants in the western region branch. Two plants were selected to carry out such study, they are Makkah and Maddinah Plants. The existing inventory problem is revealed in the high variations of the inventory levels which cause a lot of troubles, fuel shortage may happen during understocking while overstocking causes extra holding cost and additional operation expenses. The study goal is to balance the fuel inventory levels in order to avoid the stock-out and to reduce the total inventory cost. This study considers both continuous and periodic inventory systems to optimize the inventory level of a single item by estimating the order quantity and the appropriate reorder point. Consequently, two models are considered and studied namely, Economic Order Quantity (EOQ) model and Dynamic Programming model (DPM) in which demand is deterministic but it varies from period to period during the stated year. A hypothesis was tested to analyze various reorder points values with a 99.98 % confidence interval. Different cases are studied for both models. Only one of the EOQ model cases succeeded to prevent shortage under certain conditions, while all DP cases succeeded to avoid stock-out. Considerable improvements were achieved in the optimizing of the inventory level and also in the reductions of the total cost. Further cost reductions can be achieved by dividing the DP planning horizon into more stages. Keywords: Inventory level; EOQ; Dynamic programming 
Supervisor : Dr.Osamn Taylan 
Thesis Type : Master Thesis 
Publishing Year : 1431 AH
2010 AD 
Added Date : Wednesday, July 28, 2010 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
عابد منصور المكرميAlmakrami, Abed MansourResearcherMaster 

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