Robust Optimization Model for Crude Oil Scheduling under Uncertainty

Abstract

In this article, a two-stage robust model is proposed to solve the crude oil scheduling problem under uncertain conditions. The first stage of the model is developed using chance-constrained programming and fuzzy programming that can be transformed into the deterministic counterpart problem, whereas the second-stage is scenario-based. Through the combination of the approaches, the two-stage model can deal with uncertain parameters with both continuous and discrete probability distributions within a finite number of scenarios. The model was tested on several small examples and an industrial-size case. Uncertainties were introduced in ship arrival times and fluctuating product demands. The computational results demonstrate the effectiveness and robustness of the proposed approach. The tradeoff between solution robustness and model robustness was also analyzed.