CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter presents the introduction to petroleum product inventory management system. It presents the introduction, background of the study, statement of problem, aim/objectives of the study, the significance of the study, scope of the study, and organization of the research.

A petroleum product inventory management system is an automated system that can be used to keep inventory record of stock level of petroleum products on a daily basis. The system enables the owners of filling station to calculate daily sales and determine number of litres of petroleum product left so as to easily know when to re-order. Also, a petroleum product inventory management system is an automated system that will aid easy management of petroleum sales and inventory record in filling station so that needed reports can be presented when needed. A filling station, gas station or petrol station is an establishment that sells fuel and lubricants usually gasoline (petrol) or diesel fuel. Some stations carry fuels like liquefied petroleum gas (LPG), natural gas, or kerosene. In recent times, filling stations have added shops to their primary business and convenience stores are now a familiar sight alongside pumps (Abdulahi, 2004).

1.1 Background of the Study

The term “gas station” or filling station is mostly particular to the United State and Canada, where petrol is known as “gas” or “gasoline”. Elsewhere in the English-speaking world the form “petrol station”, “petrol pump”, or the old fashioned term “petrol garage” is used. In the United Kingdom, the single noun “Garage” is still commonly used even though the station being referred to may have no services/maintenance facilities which would justify this description. In Nigeria, the term “petrol station” or „filling station” is used.The difference in mode of operation constitutes a big problem for the major distributors who have to ensure that the retailing stations effectively disburse their allocation and still maintain the corporate image of the oil companies and at the same, maximizing the profit of both parties. To ensure maximum profitability of the major distributor in the industry, they have to ensure that the retailing station not only has a wide reach for marketing their products, but they market those products effectively and be fully accountable. This has led them to provide transportation services for the conveyance of the products from the depots to the respective filling stations (Christopher and Adepoju, 2012).

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