IDEAS home Printed from https://ideas.repec.org/a/spr/flsman/v35y2023i1d10.1007_s10696-022-09476-5.html
   My bibliography  Save this article

Maritime inventory routing with transshipment: the case of Yamal LNG

Author

Listed:
  • Mingyu Li

    (Norwegian University of Science and Technology)

  • Kjetil Fagerholt

    (Norwegian University of Science and Technology)

  • Peter Schütz

    (Norwegian University of Science and Technology)

Abstract

The LNG-ADP problem is a tactical planning problem for creating an annual delivery program (ADP) for a liquefied natural gas (LNG) producer. An ADP specifies the departure dates of the LNG carriers as well as the delivery dates at the different customers for a period of 12–18 months. The problem can be formulated as maritime inventory routing problem, as it is an important requirement to plan the deliveries such that inventory levels are kept within minimum and maximum limits at the customers as well as the LNG production facility. Inspired by the case of Yamal LNG, we propose a novel discrete-time formulation for the LNG-ADP problem with transshipment and intermediate storage. Our formulation also allows for waiting at the unloading ports. The problem is solved using a rolling horizon heuristic (RHH) for a case based on the Yamal LNG project. We study the impact of different RHH configurations on run time and solution quality. The results show that using a central period that is shorter than the forecast period provides the best objective function, whereas a central period that is longer than the forecast period improves run time. We also explore the effect of allowing waiting at the unloading ports. Waiting does not necessarily improve the objective function value, despite increasing the solution space. However, we observe a reduction in run time for instances where waiting is allowed.

Suggested Citation

  • Mingyu Li & Kjetil Fagerholt & Peter Schütz, 2023. "Maritime inventory routing with transshipment: the case of Yamal LNG," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 269-294, March.
  • Handle: RePEc:spr:flsman:v:35:y:2023:i:1:d:10.1007_s10696-022-09476-5
    DOI: 10.1007/s10696-022-09476-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10696-022-09476-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10696-022-09476-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Papageorgiou, Dimitri J. & Nemhauser, George L. & Sokol, Joel & Cheon, Myun-Seok & Keha, Ahmet B., 2014. "MIRPLib – A library of maritime inventory routing problem instances: Survey, core model, and benchmark results," European Journal of Operational Research, Elsevier, vol. 235(2), pages 350-366.
    2. AGRA, Agostinho & ANDERSSON, Henrik & CHRISTIANSEN, Marielle & WOLSEY, Laurence A., 2013. "A maritime inventory routing problem: discrete time formulations and valid inequalities," LIDAM Reprints CORE 2584, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Elin Halvorsen-Weare & Kjetil Fagerholt, 2013. "Routing and scheduling in a liquefied natural gas shipping problem with inventory and berth constraints," Annals of Operations Research, Springer, vol. 203(1), pages 167-186, March.
    4. Dimitri J. Papageorgiou & Ahmet B. Keha & George L. Nemhauser & Joel Sokol, 2014. "Two-Stage Decomposition Algorithms for Single Product Maritime Inventory Routing," INFORMS Journal on Computing, INFORMS, vol. 26(4), pages 825-847, November.
    5. Goel, V. & Slusky, M. & van Hoeve, W.-J. & Furman, K.C. & Shao, Y., 2015. "Constraint programming for LNG ship scheduling and inventory management," European Journal of Operational Research, Elsevier, vol. 241(3), pages 662-673.
    6. Dimitri J. Papageorgiou & Myun-Seok Cheon & George Nemhauser & Joel Sokol, 2015. "Approximate Dynamic Programming for a Class of Long-Horizon Maritime Inventory Routing Problems," Transportation Science, INFORMS, vol. 49(4), pages 870-885, November.
    7. Schach, Michael & Madlener, Reinhard, 2018. "Impacts of an ice-free Northeast Passage on LNG markets and geopolitics," Energy Policy, Elsevier, vol. 122(C), pages 438-448.
    8. Peres, Igor T. & Repolho, Hugo M. & Martinelli, Rafael & Monteiro, Nathália J., 2017. "Optimization in inventory-routing problem with planned transshipment: A case study in the retail industry," International Journal of Production Economics, Elsevier, vol. 193(C), pages 748-756.
    9. Christiansen, Marielle & Fagerholt, Kjetil & Nygreen, Bjørn & Ronen, David, 2013. "Ship routing and scheduling in the new millennium," European Journal of Operational Research, Elsevier, vol. 228(3), pages 467-483.
    10. Mingyu Li & Peter Schütz, 2020. "Planning Annual LNG Deliveries with Transshipment," Energies, MDPI, vol. 13(6), pages 1-24, March.
    11. Mutlu, Fatih & Msakni, Mohamed K. & Yildiz, Hakan & Sönmez, Erkut & Pokharel, Shaligram, 2016. "A comprehensive annual delivery program for upstream liquefied natural gas supply chain," European Journal of Operational Research, Elsevier, vol. 250(1), pages 120-130.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kjetil Fagerholt & Leonard Heilig & Eduardo Lalla-Ruiz & Frank Meisel & Shuaian Wang, 2023. "Data-driven optimization and analytics for maritime logistics," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 1-4, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mutlu, Fatih & Msakni, Mohamed K. & Yildiz, Hakan & Sönmez, Erkut & Pokharel, Shaligram, 2016. "A comprehensive annual delivery program for upstream liquefied natural gas supply chain," European Journal of Operational Research, Elsevier, vol. 250(1), pages 120-130.
    2. Koza, David Franz & Ropke, Stefan & Boleda Molas, Anna, 2017. "The liquefied natural gas infrastructure and tanker fleet sizing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 96-114.
    3. Mingyu Li & Peter Schütz, 2020. "Planning Annual LNG Deliveries with Transshipment," Energies, MDPI, vol. 13(6), pages 1-24, March.
    4. Ghiami, Yousef & Demir, Emrah & Van Woensel, Tom & Christiansen, Marielle & Laporte, Gilbert, 2019. "A deteriorating inventory routing problem for an inland liquefied natural gas distribution network," Transportation Research Part B: Methodological, Elsevier, vol. 126(C), pages 45-67.
    5. Dimitri J. Papageorgiou & Myun-Seok Cheon & George Nemhauser & Joel Sokol, 2015. "Approximate Dynamic Programming for a Class of Long-Horizon Maritime Inventory Routing Problems," Transportation Science, INFORMS, vol. 49(4), pages 870-885, November.
    6. Hemmati, Ahmad & Hvattum, Lars Magnus & Christiansen, Marielle & Laporte, Gilbert, 2016. "An iterative two-phase hybrid matheuristic for a multi-product short sea inventory-routing problem," European Journal of Operational Research, Elsevier, vol. 252(3), pages 775-788.
    7. Gustavo Souto dos Santos Diz & Silvio Hamacher & Fabricio Oliveira, 2019. "A robust optimization model for the maritime inventory routing problem," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 675-701, September.
    8. Vidal, Thibaut & Laporte, Gilbert & Matl, Piotr, 2020. "A concise guide to existing and emerging vehicle routing problem variants," European Journal of Operational Research, Elsevier, vol. 286(2), pages 401-416.
    9. Di Wu & Xuejun Ji & Fang Xiao & Shijie Sheng, 2022. "A Location Inventory Routing Optimisation Model and Algorithm for a Remote Island Shipping Network considering Emergency Inventory," Sustainability, MDPI, vol. 14(10), pages 1-22, May.
    10. Manousakis, Eleftherios & Repoussis, Panagiotis & Zachariadis, Emmanouil & Tarantilis, Christos, 2021. "Improved branch-and-cut for the Inventory Routing Problem based on a two-commodity flow formulation," European Journal of Operational Research, Elsevier, vol. 290(3), pages 870-885.
    11. Agostinho Agra & Marielle Christiansen & Lars Magnus Hvattum & Filipe Rodrigues, 2018. "Robust Optimization for a Maritime Inventory Routing Problem," Transportation Science, INFORMS, vol. 52(3), pages 509-525, June.
    12. Henrik Andersson & Marielle Christiansen & Guy Desaulniers, 2016. "A new decomposition algorithm for a liquefied natural gas inventory routing problem," International Journal of Production Research, Taylor & Francis Journals, vol. 54(2), pages 564-578, January.
    13. Cho, Jaeyoung & Lim, Gino J. & Kim, Seon Jin & Biobaku, Taofeek, 2018. "Liquefied natural gas inventory routing problem under uncertain weather conditions," International Journal of Production Economics, Elsevier, vol. 204(C), pages 18-29.
    14. Sara Al-Haidous & Tareq Al-Ansari, 2019. "Sustainable Liquefied Natural Gas Supply Chain Management: A Review of Quantitative Models," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    15. Agra, Agostinho & Christiansen, Marielle & Delgado, Alexandrino & Simonetti, Luidi, 2014. "Hybrid heuristics for a short sea inventory routing problem," European Journal of Operational Research, Elsevier, vol. 236(3), pages 924-935.
    16. Shuaian Wang & Dan Zhuge & Lu Zhen & Chung-Yee Lee, 2021. "Liner Shipping Service Planning Under Sulfur Emission Regulations," Transportation Science, INFORMS, vol. 55(2), pages 491-509, March.
    17. Arslan, Ayşe N. & Papageorgiou, Dimitri J., 2017. "Bulk ship fleet renewal and deployment under uncertainty: A multi-stage stochastic programming approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 69-96.
    18. Papageorgiou, Dimitri J. & Nemhauser, George L. & Sokol, Joel & Cheon, Myun-Seok & Keha, Ahmet B., 2014. "MIRPLib – A library of maritime inventory routing problem instances: Survey, core model, and benchmark results," European Journal of Operational Research, Elsevier, vol. 235(2), pages 350-366.
    19. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Guimarães, Luís & Amorim, Pedro, 2022. "The multi-product inventory-routing problem with pickups and deliveries: Mitigating fluctuating demand via rolling horizon heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    20. Kevin Tierney & Jan Fabian Ehmke & Ann Melissa Campbell & Daniel Müller, 2019. "Liner shipping single service design problem with arrival time service levels," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 620-652, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:flsman:v:35:y:2023:i:1:d:10.1007_s10696-022-09476-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.