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MEDiS Model for an Oil / Energy Marketing Company

The Company

As an example, consider an energy marketing company, Pemasaran Minyak Sdn Bhd. This company has been involved in the supply, distribution and marketing of energy and energy related products in the country for more than 50 years. From its humble beginning of supplying and marketing only packed lubricants, it has evolved into a full fledged marketing company supplying the entire range of lubricants and energy products that fueled the industries of the nation today.

Pemasaran Minyak Sdn Bhd does not manufacture products, but conducts the trading of oil and energy related products manufactured by others, including imports from foreign countries.

To date, Pemasaran Minyak Sdn Bhd has several warehouses, depots and storage sites located at various strategic sites in the country. It also has a fleet of road, rail carriers (transports) and a small fleet of marine coasters that ply the length of the country to distribute products to customers and stock up supplies at the company's own depots. The various modes of distribution form part of the company's marketing and distribution strategy, since not all regions in the country are currently accessible by rail or road.

Brief of the Operations of Pemasaran Minyak Sdn Bhd

  • The core product of the company remains in its lubricants business, a brand name well known, and a logo that forms sort of the defacto "word-of-mouth" description of the company among the elders of the country's citizens. Over the years, at least two dozen of the brand names of the company's lubricants have been in the country's market. Today, it is the country's market leader in the lubricants business.
  • Since the introduction of LPG (Liquefied Petroleum Gas) as an alternative fuel in the country, the company has been in the forefront of educating the public concerning the safe and clean use of the fuel to the various consumers. The company is currently the largest supplier of LPG for the household and industrial sectors. To meet the increasing demand for the product, the company sometimes have to import LPG to fulfill the commitments to its customers. LPG is supplied to the household customers in small packages (14 kg or 50 kg cannisters), and to large commercial and industrial customers in bulk.
  • The company is also one of the main suppliers of Petrol and Diesel fuels in the country, having more than 200 retail stations along the major highways and roads.. These products are mainly for the road transportation sector (automobiles, buses, trucks and motocycles).
  • The company also provides fuel oil to the major electricity generation plants in the country, a "commercial agreement" of mutual benefit, traceable back to the days of its inception as an oil trading company.
  • As the country grew, more economical and diverse fuel strategies were sought and adopted by the industries. This led the company to be involved in the coal trading business, as its market and distribution channels were already ahead of other competitors in the energy supply market.
  • Solvent was one of the companies niche products, which came about when the country started venturing into manufacturing of industrial and commercial chemicals.

Operational Information

The operational information for the company, Pemasaran Minyak Sdn Bhd, for the accounting period for: Year 2001, Quarter 1, beginning from January 1, 2001 and ending on March 31, 2001 are as follows:

F1 - Stock of Energy Products (Opening Stock & Close Stock)

Products
Opening Stock
Closing Stock
Unit Qty
Liquified Petroleum Gas LPG
5030
4850
MTON
Petrol
3580
2840
MTON
Diesel
2120
3405
MTON
Fuel Oil
6088
4052
MTON
Lubricants
803
240
MTON
Coal
1240
1488
MTON
Solvents
540
490
MTON

C2 - Energy Intake Into Plant / Process / Operations

Product
Local Purchase
Foreign Imports
Foreign Exports
Total Sell Out
Unit Qty
Liquified Petroleum Gas LPG
45690
12660
0
56030
MTON
Petrol
94087
22180
0
113188
MTON
Diesel
103460
0
14050
84290
MTON
Fuel Oil
63035
0
8605
55134
MTON
Lubricants
3130
2743
0
6326
MTON
Coal
0
8480
0
8190
MTON
Solvents
1540
2840
0
4194
MTON

F3 - Losses of Energy Products by Distribution Channels

Products
Losses Storage
Losses Transformation
Losses Others
Unit Qty
Liquified Petroleum Gas LPG
1680
0
820
MTON
Petrol
2534
1285
0
MTON
Diesel
2644
1145
46
MTON
Fuel Oil
960
342
30
MTON
Lubricants
80
30
0
MTON
Coal
20
12
10
MTON
Solvents
160
76
0
MTON

C1 - Consumption Sectors

Products
Retail Transportation
Retail
Residential
Retail
Commercial
Agriculture &
Livestock
Forestry &
Logging
Fishing
Industry
Mining &
Quarry
Construction
Industry
Unit
Quantity
Liquified Petroleum Gas LPG
540
12050
15400
0
0
0
0
0
MTON
Petrol
86780
0
0
0
0
0
0
0
MTON
Diesel
0
0
0
9870
5436
1240
8764
20420
MTON
Fuel Oil
0
0
0
0
0
0
0
0
MTON
Lubricants
246
0
0
24
32
18
21
1979
MTON
Coal
0
0
0
0
0
0
0
0
MTON
Solvents
0
35
454
0
0
0
0
29
MTON

Transportation
ROAD
Transportation
RAIL
Transportation
AIR
Transportation
INLAND WATER
Utility
Generation
TNB
Utility
Generation
SESCO
Utility
Generation
SEB
Utility
Generation
OTHERS
0
0
0
0
0
0
0
0
1224
0
0
285
0
0
0
0
16008
430
0
0
3056
750
560
350
0
0
0
0
24700
1320
4312
0
2310
140
0
0
304
165
153
0
0
0
0
0
4200
1820
1458
0
0
0
0
5
0
0
0
0

Wholesale &
Retail (Hotel/
Complexes)
Real Estate &
Services
Government &
Military
International
Shipping
14680
0
0
0
0
15
24884
0
0
0
8560
0
0
0
0
2100
6
0
432
12
0
0
0
0
0
0
0
0

General
Manufacturing
Brick Plant &
Industry
Cement Plant &
Industry Steel
Plant &
Industry
Pulp, Paper &
Printing
Chemical &
Petrochemical
Electricity
Generation
Ceramic
Industry
Food Industry
0
0
0
0
0
0
0
3556
4800
0
0
0
0
0
0
0
0
0
310
3076
2544
1130
670
561
0
0
0
0
0
0
0
0
1622
0
0
0
0
35
42
86
15
138
0
25
34
0
0
230
0
0
0
482
0
0
869
0
0
0
45
2140
0
54
10

Glass
Industry
Rubber
Industry
Wood
Industry
BALANCE
CHECK
5004
0
0
0
0
0
0
0
0
215
340
0
0
12430
8650
0
65
23
21
0
0
0
0
0
172
268
113
0

The MEDiS Balance Model for Pemasaran Minyak Sdn Bhd

The input forms F1, F2, F3 and C1 as shown above are provided as web based online inputs to the data provided for MEDiS.

Access to the above forms is only possible with authentication, login name and password. The result of the submission of those forms is a combined or assembled table shown below. Every submitted value is captured in the the table. The table calculates the sum of all the inputs and the sum of all the outputs on a row by row basis. The result of the calculation is provided in the rightmost column of each row.

As we can see on the right most column, the value of "BALANCE CHECK" is zero. This is the case for the set of data submitted that is fully balanced. Otherwise the data provider will have to go back to the respective forms, modify and resubmit inputs until the "BALANCE CHECK" values are all zero. This is the condition required for Balance in the MEDiS model.

 

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