Models of inventory centralisation for the Petrobras supply logistic of exploration and production

This paper analyses some key aspects of the supply logistics for the upstream segment (E&P - Exploration & Production) of Brazilian oil giant Petrobras. It suggests a model providing support for the decision to centralize its common inventories, based on the assumption that these inventory levels could be lowered through consolidating the storage centres for the efficiency-driven networks project. A review of the literature led to the selection of the most appropriate model for the company's situation, forming the basis of a management methodology for its supplies of materials and equipment. This was applied to a case study at the E&P-Northeast, whose results indicate the possibility of an average reduction of 30.6% in safety stocks levels; the logistics costs vary by stock policy adopted, distances between facilities, shipping options and consumption rates.