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A Mixed-Integer Programming Model for Gas Purchase and Transportation

Luis Contesse (), Juan Ferrer () and Sergio Maturana ()

Annals of Operations Research, 2005, vol. 139, issue 1, 39-63

Abstract: The natural gas supply chain involves three main agents: producers, transportation companies, and local distribution companies (LDCs). We present a MIP model that is the basis for a decision support system developed for a Chilean LDC. This model takes into account many of the complexities of the purchasing and transportation contracts to help optimize daily purchase and transportation decisions in the absence of local storage facilities. The model was solved to optimality within a reasonable time. We show how the model handles several contractual issues and give some insights for the case when demand scenarios are used to deal with uncertainty. Copyright Springer Science + Business Media, Inc. 2005

Keywords: mixed-integer programming; natural gas; logistics (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (12)

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DOI: 10.1007/s10479-005-3443-0

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