Question

In: Operations Management

What is the purpose of logistics hubs, with repect to pipelines? Would oil from the Trans-Alaska...

What is the purpose of logistics hubs, with repect to pipelines? Would oil from the Trans-Alaska Pipkeline go to a logistics hub in Oklahoma or New York?

Solutions

Expert Solution

The purpose of logistic hubs with respect to pipelines is to make logistic channels to store and transport pipelines used for construction of huge network of pipelines for flow of crude oil from one place to another. Such logistics hubs are created at centralised locations which are identified locations for proper storage and transportation of pipelines from central hubs to regional hubs and further to specific locations where they are required.

Yes, oil from Alaska would definitely go to a logistics hub in Oklahoma or New York. This is only possible through efficient logistics hub management system and construction of logistics hubs at Oklahoma and New York. Then oil from Alaska shall flow to these logistics hub and from here, it can be transported further to the remote locations where it is required. Hence logistics hubs take the role of gathering oil in network of pipelines and then diverting it to such locations where requirements are there.


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