Product distribution account for a significant portion of the logistical costs of a product. Distribution activities are repetitive in nature and they impact the delivery lead time to customers. A well designed supply chain network can substantially improve these costs and lead times. This paper presents a supply chain network design approach for distribution of petroleum products of a retailer by identifying the depot locations and gas station allocations. A heuristic procedure to solve large sized problems is also recommended. Finally, concluding remarks and recommendations for further research are presented.
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