A Case Study On LY Oil Depot Relocation

After the domestic product oil market opening to the foreign investment, Chinese product oil market is gradually in line with international standards, product oil market competition becomes more and more fierce. Oil depot as a key link in product sales system, its location is directly related to enterprise cost, service level and the formulation of subsequent operations strategy. It is stricter than general warehouse site selection because of special characteristic of oil products. The factors that oil depot location need to consider are more complicated. With the accelerating of domestic oil depot construction, how to select a scientific and reasonable location has become an important problem in the oil depot construction in our country. LY oil depot was built in the50s of the last century, it has been surrounded in the center of the city, in consideration of security and future development, the depot need to move to other areas urgently.This article summarized the location method of the fuzzy synthetic evaluation method combined with economic evaluation from the domestic and foreign literature and research results. In the practical application case of location of LY oil depot, it uses the fuzzy synthetic evaluation method based on entropy weight method. Establish the evaluation indexes and use the entropy weight method to bestow weighing to reduce human subjectivity. According to the results of the evaluation order, choose the most suitable location from alternative sites. Then use project economic evaluation method to analyze this project. Calculate the financial indexes to analyze investment feasibility. After that, analyze its risk and probability with the uncertainty analysis method and probability analysis method. At last, evaluate the environmental impact to determine the feasibility of the project further.Oil depot location is not relate to oil enterprise cost, but also relate to the following operation and development, this article provides a typical case for domestic oil depot construction, and it shows a method of oil depot location and provides reference for other oil companies at the same time.