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Distribution planning of bulk lubricants at BP Turkey

Uzar, Muhammed Furkan and Çatay, Bülent (2012) Distribution planning of bulk lubricants at BP Turkey. Omega - International Journal of Management Science, 40 (6). pp. 870-881. ISSN 0305-0483

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Official URL: http://dx.doi.org/10.1016/j.omega.2012.01.008

Abstract

We address the distribution planning problem of bulk lubricants at BP Turkey. The problem involves the distribution of different lube products from a single production plant to industrial customers using a heterogeneous fleet. The fleet consists of tank trucks where each tank can only be assigned to a single lube. The objective is to minimize total transportation related costs. The problem basically consists of assigning customer orders to the tanks of the trucks and determining the routes of the tank trucks simultaneously. We model this problem as a 0-1 mixed integer linear program. Since the model is intractable for real-life industrial environment we propose two heuristic approaches and investigate their performances. The first approach is a linear programming relaxation-based algorithm while the second is a rolling-horizon threshold heuristic. We propose two variants of the latter heuristic: the first uses a distance priority whereas the second has a due date priority. Our numerical analysis using company data show that both variants of the rolling horizon threshold heuristic are able to provide good results fast.

Item Type:Article
Uncontrolled Keywords:Distribution, large scale optimization, heuristics, OR in energy, multi-compartment vehicles
Subjects:T Technology > TS Manufactures > TS0155-194 Production management. Operations management
ID Code:18957
Deposited By:Bülent Çatay
Deposited On:04 Apr 2012 16:20
Last Modified:22 May 2012 15:12

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