Research Reports from the Department of Operations
Document Type
Dissertation
Publication Date
5-14-1989
Abstract
The distribution network for refined petroleum products is multicommodity in nature since multiple products must share the same transportation resources. To satisfactorily model this network in order to study strategic decisions requires modeling multiple time periods and the use of integer variables for fixed costs. Although the problem can be mathematically formulated as a mixed integer linear program the number of variables makes it difficult to solve using standard linear programming software for real world problems. In order to exploit the structure of the problem, which includes coupling constraints, coupling variables and embedded networks, a three-level decomposition algorithm using the large scale programming techniques of partitioning and decomposition has been developed. The first level partitions the integer variables and coupling variables (inventory variables) into one set and the product flow variables into the other set. The first set of variables is fixed while a subproblem is solved for the second set. Results from the subproblem are used to generate constraints for a relaxed master problem. Solution of the subproblem results in the second level of decomposition where the embedded networks become subproblems, at the third level, to a master problem which includes the side constraints. It is shown that the necessary results can be obtained via solution of the subproblem by decomposition. The decomposition algorithm was implemented and a case study solved.
Keywords
Operations research, Transportation--Planning, Mathematical optimization, Petroleum products--Transportation--Mathematical models, Supply chain management, Linear programming, Large scale systems--Mathematical models
Publication Title
Dissertation, Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 671 ; Submitted in partial fulfillment of the requirements for the Degree of Doctor of Philosophy.
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Leach, Cynthia Diane, "Optimization of a Multi-Product, Multi-Period Distribution Network with Fixed Costs, for Refined Petroleum Products" (1989). Research Reports from the Department of Operations. 404.
https://commons.case.edu/wsom-ops-reports/404
