Transportation and distribution management in downstream oil industry

Abstract

In this work, an integrated model is proposed for connecting oil refiners which produce fuel products at different locations. In this model, we are going to manage the distribution costs via reorganising distribution centres and their linkages to markets. Furthermore, the refineries and distribution centres need to support each other during fuel storage and transportation to overcome the demands. Therefore, the import and export schedule should be focused as a main part of the supply-network. Particularly, the proposed integrated model should be applicable for the nationwide fuel suppliers. This model should not only be beneficially helpful in the economic affairs but also observe and delineate the interactions between the different components of the business. The efficiency and value of the MIP model has been tested with a real-life problem including ten refineries and four varieties of fuel products.