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Distribution planning of bulk lubricants at BP Turkey

Listed author(s):
  • Furkan Uzar, M.
  • Çatay, Bülent
Registered author(s):

    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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    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
    DOI: 10.1016/
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    1. Kulkarni, R. V. & Bhave, P. R., 1985. "Integer programming formulations of vehicle routing problems," European Journal of Operational Research, Elsevier, vol. 20(1), pages 58-67, April.
    2. Day, Jamison M. & Daniel Wright, P. & Schoenherr, Tobias & Venkataramanan, Munirpallam & Gaudette, Kevin, 2009. "Improving routing and scheduling decisions at a distributor of industrial gasses," Omega, Elsevier, vol. 37(1), pages 227-237, February.
    3. Knust, Sigrid & Schumacher, Elisabeth, 2011. "Shift scheduling for tank trucks," Omega, Elsevier, vol. 39(5), pages 513-521, October.
    4. Kara, Imdat & Laporte, Gilbert & Bektas, Tolga, 2004. "A note on the lifted Miller-Tucker-Zemlin subtour elimination constraints for the capacitated vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 158(3), pages 793-795, November.
    5. Cornillier, Fabien & Boctor, Fayez F. & Laporte, Gilbert & Renaud, Jacques, 2008. "A heuristic for the multi-period petrol station replenishment problem," European Journal of Operational Research, Elsevier, vol. 191(2), pages 295-305, December.
    6. Nussbaum, M. & Sepulveda, M. & Cobian, A. & Gaete, J. & Parra, E. & Cruz, J., 1997. "A fuel distribution knowledge-based decision support system," Omega, Elsevier, vol. 25(2), pages 225-234, April.
    7. Avella, Pasquale & Boccia, Maurizio & Sforza, Antonio, 2004. "Solving a fuel delivery problem by heuristic and exact approaches," European Journal of Operational Research, Elsevier, vol. 152(1), pages 170-179, January.
    8. Muyldermans, L. & Pang, G., 2010. "On the benefits of co-collection: Experiments with a multi-compartment vehicle routing algorithm," European Journal of Operational Research, Elsevier, vol. 206(1), pages 93-103, October.
    9. Gerald G. Brown & Glenn W. Graves, 1981. "Real-Time Dispatch of Petroleum Tank Trucks," Management Science, INFORMS, vol. 27(1), pages 19-32, January.
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