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Marine Logistics: Crude Oil Transportation

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Marine Logistics: Crude Oil Transportation – PowerPoint PPT presentation

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Title: Marine Logistics: Crude Oil Transportation


1
Marine Logistics Crude Oil Transportation
  • Abhinav Jha
  • Mentor W. Art Chaovalitwongse

2
Motivation
  • Crude oil transportation cost
  • 1.50-3.00 per barrel
  • 10 million barrels crude oil
  • imported per day in 2003
  • ExxonMobil spent 10 billion last year

3
The Supply Chain
  • Production
  • Loading Ports
  • Vessels
  • Unloading Ports
  • Demand

4
Goal
  • Model - scheduling
  • - routing
  • - inventory management
  • - production and demand profile

5
Approach
  • Math Programming
  • Basic Model
  • Objective function - transportation costs only
  • totcost sum(v,i,j) (costs(i,j)X(v,i,j))

6
Constraints
  • Inventory Balance- loading/discharging ports
  • - vessels
  • Unloading ports
  • sum(v in vessel,i in lport) X(v,i,j) lt3 , for
    all j
  • sum(v in vessel,i in lport) X(v,i,j) gt1
  • Loading ports
  • sum(v in vessel,j in dport) X(v,i,j) 2, for
    all i


7
Results
X(v,i,j) 1 if vessel v goes from port i to
port j
8
Currently
  • Model - travel time included
  • - vessels can make multiple trips
  • - production schedule
  • - demand schedule
  • Obj fn trans costs inv costs at load-ports

9
Constraints
  • Inventory balance- loading ports and vessels
  • Travel time a vessel can only be traveling on
    one route at a time
  • Logical - cant go from unload to load port
  • - vessel capacities
  • - last day, all vessels at unload
    ports

10
Future Work
  • Incorporate
  • Demand schedule at unloading ports
  • Flow rate amount of oil that can be
    loaded or unloaded per day
  • Draft limit which ships can go to
  • certain ports

11
Challenges
  • Reduce dimensions of problem
  • Tradeoff between variables and equations
  • LP techniques
  • - Decomposition
  • - Lagrange Relaxation

12
  • Thank you
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