One time as well as the size of business operations

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one time, as well as the size of business operations in general. Updated machines were installed to serve more customers more efficiently, thus boosting sales. However,
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despite all these achievements, Indra was feeling pressure from growing competition and rising customer expectations, as he explained to Rohit: I am skeptical about the optimality of the operations strategy that I have been using for the past year. I wonder whether there could be a better way to tackle the demand properly in order to serve the customers effectively and to maximize my profits at the same time. My main concerns are about the inventory level that should be kept in order to fulfil the demand of the customers. What, when, and how much to order are the main issues when it comes to determining the purchase policy of the firm. FUEL RETAILING INDUSTRY IN INDIA In fiscal year (FY) 2012-13. sales of the transport fuels diesel and petrol accounted for an estimated 54 per cent of all petroleum products consumed by customers in India. Diesel accounted for about 44 per cent (69.1 million metric tons) and petrol accounted for 10 per cent (15.7 million metric tons) of total petroleum products sold. Fuel stations accounted for roughly 99 per cent of all the petrol and diesel sold in India. During FY 2015-16, overall consumption of petrol and diesel grew by 7.5 per cent and 14.5 per cent, respectively. Noticing this trend, oil companies in India expanded their retail networks by opening more than 2.500 fuel stations in FY 2015-16, for a total number of 56,190 fuel stations as of March 2016. State- run oil companies like Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Limited, and BPCL had a combined network of 52,604 fuel stations. The state of
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Madhya Pradesh had a total of 3,269 fuel stations during the same period, which was 6 per cent of the national figure. State-run oil companies like BPCL sold fuel products through fuel stations in three formats company owned and managed, company owned and dealer managed, and dealer owned and managed. Regardless of the format, the oil company took the responsibility for installation and maintenance of the fuel- dispensing units and underground storage tanks at each retail outlet. Those units and tanks remained the parent company's property. The oil company also operated fuel depots for intermediate storage. Each depot catered either to one district or to a group of districts, based on demand. The fuel products were delivered from the refineries directly to the depots, for final distribution to the fuel station retail outlets. To compensate for demand imbalances in nearby regions, products could be transferred between depots, if required. Fuel stations placed their orders directly with the oil company through an automatic order-retrieval system, by either sending a text message through a cell phone or accessing the supplier's web-based portal. This order was converted automatically to a sales order in the company. The delivery of the two major transport fuels petrol and diesel to the fuel stations was the responsibility of the petrol company.
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  • Fall '19
  • Rohit, Bharat Petroleum Corporation Limited, Rohit Automobiles, vehicle fuel station, Indra Ghosh

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