Shipment Planning at Oil Refineries Using Column Generation and Valid Inequalities

Document type: Journal Articles
Article type: Original article
Peer reviewed: Yes
Author(s): Jan A. Persson, Maud Göthe-Lundgren
Title: Shipment Planning at Oil Refineries Using Column Generation and Valid Inequalities
Journal: European Journal of Operational Research
Year: 2005
Volume: 163
Issue: 3
Pagination: 631-652  
ISSN: 0377-2217  
Publisher: North-Holland
ISI number: 000226197400005
Organization: Blekinge Institute of Technology
Department: School of Engineering - Dept. of Systems and Software Engineering (Sektionen för teknik – avd. för programvarusystem)
School of Engineering S- 372 25 Ronneby
+46 455 38 50 00
http://www.tek.bth.se/
Authors e-mail: jan.persson@bth.se
Language: English
Abstract: In this paper we suggest an optimization model and a solution method for a shipment planning problem. This problem concerns the simultaneous planning of how to route a fleet of ships and the planning of which products to transport in these ships. The ships are used for moving products from oil refineries to storage depots. There are inventory levels to consider both at the refineries and at the depots. The inventory levels are affected by the process scheduling at the refineries and demand at the depots. The problem is formulated using an optimization model including an aggregated representation of the process scheduling at the refineries. Hence, we integrate the shipment planning and the process scheduling at the refineries. We suggest a solution method based on column generation, valid inequalities, and constraint branching. The solution method is tested on data provided by the Nynas oil refinery company and solutions are obtained within 4 hours, for problem instances of up to 3 refineries, 15 depots, and 4 products when considering a time horizon of 42 days.  

Subject: Computer Science\General
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