Modeling downstream petroleum supply chain: The importance of multi-mode transportation to strategic planning |
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Institution: | 1. School of Chemical Engineering and Analytical Science, The University of Manchester, Manchester M13 9PL, United Kingdom;2. Institute of Process Engineering, Chinese Academy of Sciences, Beijing 100190, China |
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Abstract: | This paper proposes a deterministic mixed integer linear programming (MILP) model for downstream petroleum supply chain (PSC) network to determine the optimal distribution center (DC) locations, capacities, transportation modes, and transfer volumes. The model minimizes multi-echelon multi-product cost along the refineries, distribution centers, transportation modes and demand nodes. The relationship between strategic planning and multimodal transportation is further elucidated. A case study was considered with real data from the U.S. petroleum industry and transportation networks within Geographic Information System (GIS). A scenario analysis is also conducted to demonstrate the impact of key parameters on PSC decisions and total cost. |
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Keywords: | MILP model Multimode transportation Strategic planning Petroleum distribution network design Geographic information system Logistics decisions |
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