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Total # gas stations - 2 approaches I have seen

gas station
New answer on Jul 11, 2019
1 Answer
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Anonymous A asked on Jul 11, 2019

Hi all,

I have seen 2 approaches about how you would go about calculating the total # of gas station in a country.

Approach A is to look at [1] Total # of cars in that country / [2] # of cars that can pass through a gas station per day

Approach B is to look at [2] Total amount of cars * how many liters per day they need to refill on average / Liters Capacity per gas station (all pumps together)

Which approach makes more sense to you and why? I prefer A.

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Vlad
Expert
replied on Jul 11, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

For the 2nd approach - how do you know the liters capacity and the refill rate?

The correct one is the mix of both. In order to calculate how many cars can pass through a certain station, you need to understand how frequently you need to fill in the tank, i.e. the gas tank capacity and the litters spent per day. Alternatively, you can just use how often you (your friends) visit the gas station on average as a benchmark.

Best

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McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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