G31: How much gasoline does a gas station sell per day?

G31: How much gasoline does a gas station sell per day?

notion image

Clarifying Questions

  1. Is the estimate based on a specific type of gas station?
    • Yes, the estimate is for a medium-sized gas station with 6 pumps, operating 24 hours a day.
  2. Should we consider variations in gasoline sales based on time of day?
    • Yes, the estimate accounts for peak and non-peak hours, recognizing that gasoline sales can vary significantly throughout the day.
  3. Are we including all types of fuel sales, or just regular gasoline?
    • The estimate focuses on regular gasoline sales, assuming that diesel or premium fuel is not a significant factor.
  4. Does the estimate account for seasonal variations in gasoline consumption?
    • No, the estimate is based on average sales, without adjusting for seasonal fluctuations or special events that might influence gasoline consumption.

The Time-Based Sales Approach

This approach begins by analyzing gasoline sales patterns based on different times of the day. We calculate the number of sales per pump during peak and non-peak hours, and then use these figures to estimate the total daily gasoline sales for the gas station.
The calculations are detailed and the final estimates are provided for review. Let’s delve into the methodology.

Initial Approach

The initial approach is systematic, dividing the day into peak and non-peak hours to reflect variations in gasoline sales. By calculating the number of sales per pump during each time period and summing these figures, we can estimate the total gasoline sold per day.

Breakdown of the Approach

1. Peak and Non-Peak Hours:
  • Peak Hours (9 AM - 12 PM and 5 PM - 9 PM): During these times, sales occur more frequently, with a sale happening every 3 minutes from 9 AM to 12 PM and every 10 minutes from 5 PM to 9 PM. This results in higher sales per pump.
  • Non-Peak Hours (12 PM - 5 PM and 9 PM - 9 AM): Sales occur less frequently, with a sale every 5 minutes from 12 PM to 5 PM and every 15 minutes from 9 PM to 9 AM.
2. Calculation of Sales per Pump:
  • Peak Hours Sales: For the hours from 9 AM to 12 PM, each pump handles 42 sales per hour (sale every 3 minutes). From 5 PM to 9 PM, each pump handles 6 sales per hour (sale every 10 minutes).
  • Non-Peak Hours Sales: For the hours from 12 PM to 5 PM, each pump handles 68 sales per hour (sale every 5 minutes). From 9 PM to 9 AM, each pump handles 4 sales per hour (sale every 15 minutes).
3. Total Sales Calculation:
  • Daily Sales per Pump: By summing the sales during peak and non-peak hours and multiplying by the number of pumps (6), we estimate the total daily sales.
  • Gallons of Gasoline Sold: With an average fill-up of 12 gallons per vehicle, the total gallons sold per day are calculated by multiplying the total number of sales by 12 gallons.
4. Final Estimate:
  • By aggregating the sales figures for all hours, we estimate that the gas station sells approximately 7,920 gallons of gasoline per day.

Solution Excel Sheet

The calculations and assumptions have been documented in detail, and the final estimate of 7,920 gallons per day reflects the combined impact of peak and non-peak hour sales. This approach provides a comprehensive estimate of daily gasoline sales for a medium-sized gas station operating 24 hours a day.