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A holistic MILP model for scheduling and inventory management of a multiproduct oil distribution system

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  • Mostafaei, Hossein
  • Castro, Pedro M.
  • Relvas, Susana
  • Harjunkoski, Iiro

Abstract

This paper addresses the optimal scheduling of an oil transportation system characterized by a straight multiproduct pipeline featuring multiple input and output nodes, where products are dispatched to local markets often by tanker trucks. We present a new continuous-time mixed integer linear programming (MILP) model that is designed based on real-world necessities and that requires significantly fewer binary variables than previous work. As main contributions, the model: i) can rigorously avoid forbidden product sequences in every pipeline segment; ii) considers filler batch constraints to avoid large contamination volumes; and iii) includes inventory management constraints in the different pipeline nodes. We first use an illustrative example before testing the approach with a new large-scale example problem and three real-world cases from the literature. Results show that the proposed model has a tight linear programming (LP) relaxation and is very efficient computationally. It is thus a significant contribution to the state-of-the-art.

Suggested Citation

  • Mostafaei, Hossein & Castro, Pedro M. & Relvas, Susana & Harjunkoski, Iiro, 2021. "A holistic MILP model for scheduling and inventory management of a multiproduct oil distribution system," Omega, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:jomega:v:98:y:2021:i:c:s0305048319301173
    DOI: 10.1016/j.omega.2019.102110
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    References listed on IDEAS

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    1. Ali Zaghian & Hossein Mostafaei, 2016. "An MILP model for scheduling the operation of a refined petroleum products distribution system," Operational Research, Springer, vol. 16(3), pages 513-542, October.
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    Cited by:

    1. Li, Zhengbing & Liang, Yongtu & Ni, Weilong & Liao, Qi & Xu, Ning & Li, Lichao & Zheng, Jianqin & Zhang, Haoran, 2022. "Pipesharing: economic-environmental benefits from transporting biofuels through multiproduct pipelines," Applied Energy, Elsevier, vol. 311(C).
    2. Mostafaei, Hossein & Castro, Pedro M. & Oliveira, Fabricio & Harjunkoski, Iiro, 2021. "Efficient formulation for transportation scheduling of single refinery multiproduct pipelines," European Journal of Operational Research, Elsevier, vol. 293(2), pages 731-747.
    3. Weiwei Li & Lisheng Weng & Kaixu Zhao & Sidong Zhao & Ping Zhang, 2021. "Research on the Evaluation of Real Estate Inventory Management in China," Land, MDPI, vol. 10(12), pages 1-29, November.
    4. Blanco, Víctor & González, Gabriel & Hinojosa, Yolanda & Ponce, Diego & Pozo, Miguel A. & Puerto, Justo, 2022. "Network flow based approaches for the pipelines routing problem in naval design," Omega, Elsevier, vol. 111(C).

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