Optimization of a multi-product, multi-period distribution network with fixed costs, for refined petroleum products
Thesis/Dissertation
·
OSTI ID:6129700
The distribution network for refined petroleum products is multi-commodity in nature since multiple products must share the same transportation resources. To satisfactorily model this network in order to study strategic decisions requires modeling multiple time periods and the use of integer variables for fixed costs. Although the problem can be mathematically formulated as a mixed integer linear program the number of variables makes it difficult to solve using standard linear programming software for real world problems. In order to exploit the structure of the problem, which includes coupling constraints, coupling variables and embedded networks, a three-level decomposition algorithm using the large scale programming techniques of partitioning and decomposition has been developed. The first level partitions the integer variables and coupling variables (inventory variables) into one set and the product flow variables into the other set. The first set of variables is fixed while a subproblem is solved for the second set. Results from the subproblem are used to generate constraints for a relaxed master problem. Solution of the subproblem results in the second level of decomposition where the embedded networks become subproblems, at the third level, to a master problem which includes the side constraints. It is shown that the necessary results can be obtained via solution of the subproblem by decomposition. The decomposition algorithm was implemented and a case study solved.
- Research Organization:
- Case Western Reserve Univ., Cleveland, OH (USA)
- OSTI ID:
- 6129700
- Country of Publication:
- United States
- Language:
- English
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