SMM$346$ Supply Chain Analytics

Coursework Part A: Kangaroo Oil Company: Far Eastern Operations

Introduction

The objective of this case is to develop skills to apply optimization models to support business decisions. In particular, you will get experience in formulating LP models, solving them with Excel, interpreting the computer outputs and developing policy implications.

The Kangaroo Oil Company is an international producer, refiner, transporter, and wholesale distributor of oil, gasoline, and other petroleum products to a few major clients through long$-$term contracts. Based in Canberra, Australia, Kangaroo Oil is a holding company with several subsidiary companies operating worldwide. A major problem for Kangaroo today is to coordinate the actions of these various subsidiaries into an executable action plan while maintaining reasonable levels of autonomy at the subsidiary companies.

To date, an annual corporate plan that details the pattern of refinery productions and shipments has been developed. This plan provides general guidelines and the plan can be revised periodically to reflect major changing conditions. This corporate plan was originally done on a trial and error basis, but Tony D$$Amato and his strategic operations planning $($SOP$)$ group have decided to hire a consultancy company to design and implement an optimal production and distribution plan.