A framework for crude oil scheduling in an integrated terminal-refinery system under supply uncertainty

F. Oliveira, P.M. Nunes, R. Blajberg and S. Hamacher

European Journal of Operational Research, 2016, vol. 252, issue 2, 635-645

Abstract: Operational decisions for crude oil scheduling activities are determined on a daily basis and have a strong impact on the overall supply chain cost. The challenge is to develop a feasible schedule at a low cost that has a high level of confidence. This paper presents a framework to support decision making in terminal-refinery systems under supply uncertainty. The proposed framework comprises a stochastic optimization model based on mixed-integer linear programming for scheduling a crude oil pipeline connecting a marine terminal to an oil refinery and a method for representing oil supply uncertainty. The scenario generation method aims at generating a minimal number of scenarios while preserving as much as possible of the uncertainty characteristics. The proposed framework was evaluated considering real-world data. The numerical results suggest the efficiency of the framework in providing resilient solutions in terms of feasibility in the face of the inherent uncertainty.

Keywords: Stochastic programming; Terminal-refinery system; Crude oil scheduling; Uncertain oil supply (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:252:y:2016:i:2:p:635-645

DOI: 10.1016/j.ejor.2016.01.034

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