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Hierarchical Decomposition Approach for Crude Oil Scheduling: A SINOPEC Case

Author

Listed:
  • Xuan Chen

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Simin Huang

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Dejing Chen

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Zhihai Zhang

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Li Zheng

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Ignacio Grossmann

    (Department of Chemical Engineering, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Shihui Chen

    (SINOPEC Maoming Company, Maoming, Guangdong 525000, China)

Abstract

This work addresses the large-scale crude oil scheduling problem of China’s SINOPEC Maoming refinery that imports various types of crude oil from two terminals via bidirectional long-distance pipelines. We use a hierarchical decomposition approach to construct a two-stage model of the refinery operations. In the upper-level model, storage and charging tanks are aggregated to determine the inflows and outflows between the two terminals and the refinery plant. The lower-level submodels solve the detailed loading and unloading operations at storage and charging tanks inside the terminals and the refinery plant. To further improve the computational efficiency, we develop a rule-based tank-selection strategy to obtain a feasible schedule. Although state-of-the-art commercial solvers cannot obtain feasible solutions of the relaxed monolithic mixed-integer linear programming model within a reasonable time, our decomposition heuristic can generate schedules that are more flexible than manually generated schedules. It also provides the refinery with annual estimated cost savings of $30 million.

Suggested Citation

  • Xuan Chen & Simin Huang & Dejing Chen & Zhihai Zhang & Li Zheng & Ignacio Grossmann & Shihui Chen, 2014. "Hierarchical Decomposition Approach for Crude Oil Scheduling: A SINOPEC Case," Interfaces, INFORMS, vol. 44(3), pages 269-285, June.
    • Handle: RePEc:inm:orinte:v:44:y:2014:i:3:p:269-285
    DOI: 10.1287/inte.2014.0744
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    References listed on IDEAS

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    1. Chryssolouris, George & Papakostas, Nikolaos & Mourtzis, Dimitris, 2005. "Refinery short-term scheduling with tank farm, inventory and distillation management: An integrated simulation-based approach," European Journal of Operational Research, Elsevier, vol. 166(3), pages 812-827, November.
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