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The Shell Oil Company: Fuel Oil Cargo Transportation Cost Minimization

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STRAYER UNIVERSITY

THE SHELL OIL COMPANY: FUEL OIL CARGO TRANSPORTATION COST MINIMIZATION

A TERM PAPER SUBMITTED TO
PROFESSOR FARAMARZ FATHNEZHAD, PH.D.
QUANTITATIVE METHODS FOR BUSINESS
MAT540 007016
WINTER 2006

BY

ALPHARD VICTOR T. ROMERO

ALEXANDRIA, VIRGINIA

MARCH 2006

Contents

Chapter 1. Introduction…………………..…...…………..……………………..………..2 2. The Case Of Shell Oil Company……………………………….…...……..….3 3. The Case Figures And Calculations.……….…………………….….......….…5 4. Conclusions……………………….…….…………………………..…………9
Bibliography…..………………………………….…………….………………………..10

-1-

CHAPTER 1 - Introduction

In today’s competitive global business environment, more and more business organizations have realized that the creativity and ingenuity needed to develop new products, provide better services, grow market share, and maintain a competitive advantage can best come through an effective practice of management science (Strohmeier n.d.). One of the known and established firms who have practiced and maximize the use of the management science application is the Shell Oil Company. The Shell Oil Company is an affiliate company of the petroleum-chemical giant firm Shell Group, a global firm that operates in more than 140 countries and territories worldwide and spans its operations in different subsidiaries and divisions. The Shell Oil Company, with its corporate office headquartered in Houston, Texas, is one of the leading oil and gas producer and distributor in United States. It operations covers production, refining and distribution of various oil, chemical and natural gas to various part of the country, and supplies almost a quarter of petroleum-chemical energy sources in the whole United States. From its earliest beginnings, The Shell Oil Company had been supplying fuel oil and gasoline products to various fuel

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