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A simulation-based multi-objective optimization study of the fleet sizing problem in the offshore industry

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  • Hamidreza Eskandari

    (Industrial Engineering Department, School of Engineering, Tarbiat Modares University)

  • Ehsan Mahmoodi

    (Industrial Engineering Department, School of Engineering, Tarbiat Modares University)

Abstract

Oil companies usually hire a number of offshore supply vessels (OSVs) under long-term contracts for offshore supply logistics. If the number of long-term chartered vessels is not sufficient to satisfy platform demands, one or more OSVs would be required under short-term contracts. In this article two policies for OSV routing to installations are compared: routing based on a fixed schedule, currently used in Iranian offshore oil company and routing based on platform demands. A discrete-event simulation model is developed and simulation-based optimization is used to find near-optimal fleet size and composition that minimize expected total cost subject to a minimum desired expected platform service level. Changing the platform service level constraint allows results to be obtained for multiple best compromise solutions along a performance trade-off curve. For each routing policy, an optimal trade-off curve is obtained using simulation-based optimization. Performance evaluation of routing policies is compared at different service levels. Experimental results indicate that the routing based on platform demands dominates the routing based on a fixed schedule under near-optimal decision variable settings.

Suggested Citation

  • Hamidreza Eskandari & Ehsan Mahmoodi, 2016. "A simulation-based multi-objective optimization study of the fleet sizing problem in the offshore industry," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(4), pages 436-457, December.
    • Handle: RePEc:pal:marecl:v:18:y:2016:i:4:d:10.1057_mel.2015.21
    DOI: 10.1057/mel.2015.21
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    References listed on IDEAS

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    Cited by:

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    2. Roar Adland & Pierre Cariou & François-Charles Wolff, 2018. "Comparing transaction-based and expert-generated price indices in the market for offshore support vessels," Working Papers halshs-01843720, HAL.

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