A simulation model of a gas station

This paper presents a simulation model of a gas station, using the Systems Dynamics methodology. System parameters such as rates of discharge and sale of gasoline, storage levels of both 91 and 95 octane gasoline, and funding level were estimated by interviewing the staff of local gas stations and by studying documentation provided by them. Model validation was accomplished through consultation with experts on the subject. The modeling process has led to the identification of problems that have created shortages including inefficiency and ineffectiveness both organizational and logistical, population growth, wasteful use of cheap fuel and misinformation as to which type of gasoline is right for a particular vehicle. The analysis of various scenarios showed that the financial feasibility of a gas station is dependent on/affected by the ratio of sales of 91 to 95 octane gasoline, their prices and the structure established for the storage of gasoline. The results suggest that the composition of the demand coupled with the structure established for the storage of gasoline as well as fixed and low prices may alter the income level of a gas station, putting at risk its financial stability.