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Scheduling Ocean Transportation of Crude Oil

Author

Listed:
  • Gerald G. Brown

    (Naval Postgraduate School, Monterey, California 93943-5100)

  • Glenn W. Graves

    (University of California, Los Angeles, California 90024)

  • David Ronen

    (Naval Postgraduate School, Monterey, California 93943-5100)

Abstract

A crude oil tanker scheduling problem faced by a major oil company is presented and solved using an elastic set partitioning model. The model takes into account all fleet cost components, including the opportunity cost of ship time, port and canal charges, and demurrage and bunker fuel. The model determines optimal speeds for the ships and the best routing of ballast (empty) legs, as well as which cargos to load on controlled ships and which to spot charter. All feasible schedules are generated, the cost of each is accurately determined and the best set of schedules is selected. For the problems encountered, optimal integer solutions to set partitioning problems with thousands of binary variables have been achieved in less than a minute.

Suggested Citation

  • Gerald G. Brown & Glenn W. Graves & David Ronen, 1987. "Scheduling Ocean Transportation of Crude Oil," Management Science, INFORMS, vol. 33(3), pages 335-346, March.
  • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:3:p:335-346
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    File URL: http://dx.doi.org/10.1287/mnsc.33.3.335
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    Citations

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    Cited by:

    1. Shih, Li-Hsing, 1997. "Planning of fuel coal imports using a mixed integer programming method," International Journal of Production Economics, Elsevier, vol. 51(3), pages 243-249, September.
    2. repec:eee:transe:v:110:y:2018:i:c:p:47-70 is not listed on IDEAS
    3. Fagerholt, Kjetil & Lindstad, Håkon, 2000. "Optimal policies for maintaining a supply service in the Norwegian Sea," Omega, Elsevier, vol. 28(3), pages 269-275, June.
    4. Hennig, F. & Nygreen, B. & Christiansen, M. & Fagerholt, K. & Furman, K.C. & Song, J. & Kocis, G.R. & Warrick, P.H., 2012. "Maritime crude oil transportation – A split pickup and split delivery problem," European Journal of Operational Research, Elsevier, vol. 218(3), pages 764-774.
    5. Bilgen, Bilge & Ozkarahan, Irem, 2007. "A mixed-integer linear programming model for bulk grain blending and shipping," International Journal of Production Economics, Elsevier, vol. 107(2), pages 555-571, June.
    6. Fagerholt, Kjetil & Christiansen, Marielle & Magnus Hvattum, Lars & Johnsen, Trond A.V. & Vabø, Thor J., 2010. "A decision support methodology for strategic planning in maritime transportation," Omega, Elsevier, vol. 38(6), pages 465-474, December.
    7. Sambracos, E. & Paravantis, J. A. & Tarantilis, C. D. & Kiranoudis, C. T., 2004. "Dispatching of small containers via coastal freight liners: The case of the Aegean Sea," European Journal of Operational Research, Elsevier, vol. 152(2), pages 365-381, January.
    8. repec:eee:reensy:v:119:y:2013:i:c:p:126-140 is not listed on IDEAS
    9. Izabela Ewa Nielsen & Ngoc Anh Dung Do & Jaejin Jang & Grzegorz Bocewicz, 2016. "Planning of vessel speed and fuel bunkering over a route with speed limits," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(4), pages 414-435, December.
    10. Ozelkan, Ertunga C. & D'Ambrosio, Alfred & Teng, S. Gary, 2008. "Optimizing liquefied natural gas terminal design for effective supply-chain operations," International Journal of Production Economics, Elsevier, vol. 111(2), pages 529-542, February.
    11. Al-Khayyal, Faiz & Hwang, Seung-June, 2007. "Inventory constrained maritime routing and scheduling for multi-commodity liquid bulk, Part I: Applications and model," European Journal of Operational Research, Elsevier, vol. 176(1), pages 106-130, January.
    12. Fagerholt, Kjetil, 2001. "Ship scheduling with soft time windows: An optimisation based approach," European Journal of Operational Research, Elsevier, vol. 131(3), pages 559-571, June.
    13. Pedrielli, Giulia & Lee, Loo Hay & Ng, Szu Hui, 2015. "Optimal bunkering contract in a buyer–seller supply chain under price and consumption uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 77-94.
    14. Reinhardt, Line Blander & Plum, Christian E.M. & Pisinger, David & Sigurd, Mikkel M. & Vial, Guillaume T.P., 2016. "The liner shipping berth scheduling problem with transit times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 116-128.
    15. Lin, Dung-Ying & Tsai, Yu-Yun, 2014. "The ship routing and freight assignment problem for daily frequency operation of maritime liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 52-70.
    16. repec:pal:jorsoc:v:58:y:2007:i:9:d:10.1057_palgrave.jors.2602263 is not listed on IDEAS
    17. Alizadeh, Amir H. & Talley, Wayne K., 2011. "Vessel and voyage determinants of tanker freight rates and contract times," Transport Policy, Elsevier, vol. 18(5), pages 665-675, September.
    18. Ghosh, Sugoutam & Lee, Loo Hay & Ng, Szu Hui, 2015. "Bunkering decisions for a shipping liner in an uncertain environment with service contract," European Journal of Operational Research, Elsevier, vol. 244(3), pages 792-802.
    19. repec:pal:jorsoc:v:61:y:2010:i:3:d:10.1057_jors.2009.77 is not listed on IDEAS
    20. Meng, Qiang & Wang, Shuaian & Lee, Chung-Yee, 2015. "A tailored branch-and-price approach for a joint tramp ship routing and bunkering problem," Transportation Research Part B: Methodological, Elsevier, vol. 72(C), pages 1-19.
    21. Amir Alizadeh & Wayne Talley, 2011. "Microeconomic determinants of dry bulk shipping freight rates and contract times," Transportation, Springer, vol. 38(3), pages 561-579, May.

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