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Distribution planning of bulk lubricants at BP Turkey

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  • Furkan Uzar, M.
  • Çatay, Bülent
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    Abstract

    We address the distribution planning problem of bulk lubricants at BP Turkey. The problem involves the distribution of different lube products from a single production plant to industrial customers using a heterogeneous fleet. The fleet consists of tank trucks where each tank can only be assigned to a single lube. The objective is to minimize total transportation related costs. The problem basically consists of assigning customer orders to the tanks of the trucks and determining the routes of the tank trucks simultaneously. We model this problem as a 0–1 mixed integer linear program. Since the model is intractable for real-life industrial environment we propose two heuristic approaches and investigate their performances. The first approach is a linear programming relaxation-based algorithm while the second is a rolling-horizon threshold heuristic. We propose two variants of the latter heuristic: the first uses a distance priority whereas the second has a due date priority. Our numerical analysis using company data shows that both variants of the rolling horizon threshold heuristic are able to provide good results fast.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 40 (2012)
    Issue (Month): 6 ()
    Pages: 870-881

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    Handle: RePEc:eee:jomega:v:40:y:2012:i:6:p:870-881

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    Related research

    Keywords: Distribution; Large scale optimization; Heuristics; OR in energy; Multi-compartment vehicles;

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    Cited by:
    1. Relvas, Susana & Boschetto Magatão, Suelen N. & Barbosa-Póvoa, Ana Paula F.D. & Neves, Flávio, 2013. "Integrated scheduling and inventory management of an oil products distribution system," Omega, Elsevier, Elsevier, vol. 41(6), pages 955-968.

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