Application of Models in Inventory Management in Oil and Gas Companies: A Case Study of Corporation in Port Harcourt

Abstract

This study applied models in inventory management in oil and gas companies using the warehouse in an Oil and Gas Company as a case study for data collection. The study identified the materials / parts managed as inventory, determined and applied inventory models used in the management of stocked items / raw materials and minimized inventory investment to maximize profits. The Technique for Order of Preference by Similarities to ideal Solution (TOPSIS), Pareto analysis and Analytic Hierarchy Process (AHP) models in inventory management were applied. The AHP model top priority with Pressure gauge items, followed by Control Systems and the least was completion. Result obtained using TOPSIS and Pareto analysis appeared to be similar, which placed the control systems as the most valuable with the highest usage rate, followed by pressure gauge. Hence, the top two priority items for inventory management of oil and gas companies is pressure gauge items and control systems. Based on the findings, the TOPSIS model appeared as the optimum and the most technically viable model for inventory management in the oil and gas industry.