Stock keeping accuracy: A data based investigation of storage tank calibration challenges

Abstract

In fuel dispensing and fuel haulage companies, adequate stock tracking is mandatory for performance and business productivity analysis. Stock monitoring is vital for inventory management; it is a tool that enables adequate planning in terms of importation requirements when stock is low and for general price management. The accuracy of stock inventory depends largely on the accuracy of the calibration data of the various storage tanks and structures deployed along the value chain. Mobile tanks are prone to harsh conditions due to poor road networks in some countries which affect tanker truck alignment and suspension systems, and all these affects tank calibration accuracy. This is further aggravated by various road impacts, and accidents that sometimes distort portions of the tank shape making it to lose its cylindrical profile in some sections. Excessive stock variations is often linked to product theft and sabotage, though this may be true in some instances, but at times, this variations may be as a result of inaccuracies in tank calibration. The dataset presented in this paper contains tank calibration parameters for two consecutive calibrations carried out on the same mobile storage tank. The statistical analysis attempts to identify variations between the two tank calibration dataset as an indication of potential stock accuracy variations.