This case study introduces the current heuristic used by Yukong (now SK Energy) for setting optimal inventory levels at company-operated gas stations and introduces a reorder point heuristic for comparative evaluation. According to simulation results using 1987 performance data, the reorder point heuristic was superior for petroleum products with relatively high daily shipment volumes and stable distributions, while for petroleum products with low daily shipment volumes and unstable distributions, the performance of the two heuristics was similar.