International Journal of Energy Science IJES
CWorld Academic Publishing
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right time, at the right cost, at the right quantity, and with thehighest attention to quality. Success of the entire value chaindepends on the design and management of all aspects,including, suppliers, inputs, processes, outputs, etc. For thisreason, management must determine how to maximise value bydesigning enhanced processes and systems that reduce cost or price and increase perceived benefits. Most of the published literatures on supply chain concentrate on supply chain risks,triggered by a recent series of catastrophic events that haveimpacted the global economies and supply chains. The existingstudies that are found in the literature have been instrumental inidentifying and analysing several causes of disruptions and risks in supply chains and most of them are based on casestudies and empirical evidence (Giannakis and Louis, 2010).Wagner and Bode (2006) conducted a large-scale investigationon important relationship between supply chain vulnerabilityand supply chain risk, and provides a finer understanding of theantecedents of supply chain vulnerability. Melnyk et al. (2009) provide an innovative formalized methodology in mitigatingdisruptions in supply chains with the use of discrete eventsimulation.This project considered logistics principles and theories inorder to create value and make more effective fuel supplysystem of organisations, and to improve the links betweenfacilities and processes within different areas of theorganisation. Fuel operations of organisations are seen as avalue chain or network of facilities and processes. TheOrganisation’s fuel supply chain includes suppliers of fuel,different internal processes between refuelling facilities, labour,capital and information resources, and outcomes that principally consist in supply of fuel to the organisation’sinternal users (Figure 1).
Fig.1. Organisation fuel supply chain
To achieve the objective of this research, this project aimsto analyse demand and cost of fuel in Organisation’s alldifferent fuel supply methods, cost of labour involved withinternal fuel operations and quality of the system (servicequality, environmental quality, and safety), in order to try tocoordinate and manage information, physical goods, and services among the users in the organisation's fuel value chain.
Fuel Global and Australian Condition
Understandings of the current situation of fuel provide animportant rationale for this project. The cost and price of oil isrising continuously, especially from 2001. Figure 2 illustratesthe fuel price evolution from 1986 to 2008 (World EconomicForum, 2009). Following this trend, it is understandable howmany businesses and logistic operators that rely on fuel have been seriously impacted with current trends on fuel prices.The price of fuel in Australia is mainly influenced by three broad components: International benchmark prices, taxes, and other costs and margins (Australian Competition & Consumer Commission, 2010). International prices are stronglyinfluenced by the Organization of the Petroleum ExportingCountries (OPEC), which is conformed by the countries withhigh oil reserves (Algeria, Angola, Ecuador, Iran, Iraq, Kuwait,Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates,and Venezuela) (Gürcan Gülen, S. 1996).
Fig.2. Fuel price evolution from 1986 to 2008 (world economic forum, 2009)
Safety in Fuel Facilities
Safety recommendations provided by safety and hazardousmaterials handbook authors, review philosophies and principlesthat can be applied to protect the organisation’s refuellingfacilities. Nolan (1996) stated that to protect the upgrades of refuelling facilities the same philosophy that would apply toany building or installation should be followed. Somerequirements such as personnel evacuation, containment,isolation, and suppression should be taken into consideration.Other important standards in the area of safety building or upgrading refuelling facilities are: AS 1692—2006 (Steel tanksfor flammable and combustible liquids) and AS 1657—1992(Fixed platforms, walkways, stairways and ladders — Design,construction and installation). However in Australia, theAustralian Standard AS 1940 (The storage and handling of flammable and combustible liquids) is the most importantregulation for the design of fuel storage systems. This Standard ensures that tanks and auxiliary equipment are correctlymaintained and appropriate fuel handling procedures are met.This standard also includes matters relating to facilityoperations and the management of emergencies.