Solving a short sea inventory routing problem in the oil industry

Abstract

We address an optimization problem related to the minimization of the distribution costs associated with product delivery in the oil industry. Particularly, the problem consists of determining a schedule of shipments from production ports to satisfy demand and desired inventory limits at consumptions ports. Products are transported in vessels, which can be viewed as a set of shared resources. The complexity of the problem derives from the problem structure and the number of decisions that need to be made throughout a planning horizon. The context that we studied belongs to the family of short sea inventory routing problems for which the ports are in the same geographical area. We formulate a mixed-integer programming model that captures the most relevant features of the real system. The main decisions include the selection of the vessels that will be used, the paths that each vessel will follow, and the quantities of each product loaded and unloaded at each port visited during the planning horizon. We test the limits of our mathematical programming formulation and develop a heuristic approach for tackling problem sizes that exceed the capabilities of a commercial solver.

Publication
Computers & Industrial Engineering
Sergio Cavero
Sergio Cavero
Phd in Artificial Intelligence

Sergio Cavero was born Madrid (Spain) on September 24, 1997. He graduated in Software Engineering from Universidad Politécnica de Madrid in 2019. During his undergraduate studies he made a stay at the University of Bradford (UK). In addition, he was awarded twice with the ‘Beca de Excelencia of the Comunidad de Madrid, and also awarded for the Best Final Degree Project. Later, he completed a Master’s Degree in Artificial Intelligence at the same university (UPM) obtaining awards for Best Academic Record (‘Premio José Cuena’) and Best Master’s Thesis. He academic results lend him be beneficiary of one of the ‘Ayudas Para la Formación de Profesorado Universitario (FPU)’, funded by the Spanish Government. He is currently carrying out his doctoral thesis at the Universidad Rey Juan Carlos, supervised by Professors Abraham Duarte and Eduardo G. Pardo. His main research interests focus on the interface among Computer Science, Artificial Intelligence and Operations Research. Most of his publications deal with the development of metaheuristics procedures for optimization problems modeled by graphs.