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Feedstock Routing in the ExxonMobil Downstream Sector

Author

Listed:
  • Kevin C. Furman

    (ExxonMobil Research and Engineering, Annandale, New Jersey 08801)

  • Jin-Hwa Song

    (ExxonMobil Research and Engineering, Annandale, New Jersey 08801)

  • Gary R. Kocis

    (ExxonMobil Research and Engineering, Fairfax, Virginia 22037)

  • Michael K. McDonald

    (ExxonMobil Refining and Supply Company, Fairfax, Virginia 22037)

  • Philip H. Warrick

    (ExxonMobil Research and Engineering, Fairfax, Virginia 22037)

Abstract

ExxonMobil annually transports significant volumes of vacuum gas oil (VGO) from supply points in Europe to refineries in the United States. Optimizing these transportation costs by using modern mathematical programming technology can provide significant cost savings. We developed a mixed-integer programming formulation for VGO routing and inventory management, and we integrated it into a decision support tool to enable experienced traders and schedulers to further improve the performance of ExxonMobil's downstream supply chain.

Suggested Citation

  • Kevin C. Furman & Jin-Hwa Song & Gary R. Kocis & Michael K. McDonald & Philip H. Warrick, 2011. "Feedstock Routing in the ExxonMobil Downstream Sector," Interfaces, INFORMS, vol. 41(2), pages 149-163, April.
    • Handle: RePEc:inm:orinte:v:41:y:2011:i:2:p:149-163
    DOI: 10.1287/inte.1100.0508
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Dimitri J. Papageorgiou & Ahmet B. Keha & George L. Nemhauser & Joel Sokol, 2014. "Two-Stage Decomposition Algorithms for Single Product Maritime Inventory Routing," INFORMS Journal on Computing, INFORMS, vol. 26(4), pages 825-847, November.
    2. Mutlu, Fatih & Msakni, Mohamed K. & Yildiz, Hakan & Sönmez, Erkut & Pokharel, Shaligram, 2016. "A comprehensive annual delivery program for upstream liquefied natural gas supply chain," European Journal of Operational Research, Elsevier, vol. 250(1), pages 120-130.
    3. Agra, Agostinho & Christiansen, Marielle & Delgado, Alexandrino & Simonetti, Luidi, 2014. "Hybrid heuristics for a short sea inventory routing problem," European Journal of Operational Research, Elsevier, vol. 236(3), pages 924-935.
    4. Ioannis Fragkos & Bert De Reyck, 2016. "Improving the Maritime Transshipment Operations of the Noble Group," Interfaces, INFORMS, vol. 46(3), pages 203-217, April.
    5. Papageorgiou, Dimitri J. & Nemhauser, George L. & Sokol, Joel & Cheon, Myun-Seok & Keha, Ahmet B., 2014. "MIRPLib – A library of maritime inventory routing problem instances: Survey, core model, and benchmark results," European Journal of Operational Research, Elsevier, vol. 235(2), pages 350-366.
    6. Michael F. Gorman & John-Paul Clarke & Amir Hossein Gharehgozli & Michael Hewitt & René de Koster & Debjit Roy, 2014. "State of the Practice: A Review of the Application of OR/MS in Freight Transportation," Interfaces, INFORMS, vol. 44(6), pages 535-554, December.
    7. de Assis, Leonardo Salsano & Camponogara, Eduardo, 2016. "A MILP model for planning the trips of dynamic positioned tankers with variable travel time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 372-388.
    8. Dimitri J. Papageorgiou & Myun-Seok Cheon & George Nemhauser & Joel Sokol, 2015. "Approximate Dynamic Programming for a Class of Long-Horizon Maritime Inventory Routing Problems," Transportation Science, INFORMS, vol. 49(4), pages 870-885, November.
    9. Gustavo Diz & Luiz Felipe Scavarda & Roger Rocha & Silvio Hamacher, 2014. "Decision Support System for PETROBRAS Ship Scheduling," Interfaces, INFORMS, vol. 44(6), pages 555-566, December.
    10. Agostinho Agra & Marielle Christiansen & Kristine S. Ivarsøy & Ida Elise Solhaug & Asgeir Tomasgard, 2017. "Combined ship routing and inventory management in the salmon farming industry," Annals of Operations Research, Springer, vol. 253(2), pages 799-823, June.
    11. Hemmati, Ahmad & Hvattum, Lars Magnus & Christiansen, Marielle & Laporte, Gilbert, 2016. "An iterative two-phase hybrid matheuristic for a multi-product short sea inventory-routing problem," European Journal of Operational Research, Elsevier, vol. 252(3), pages 775-788.
    12. Faramroze G. Engineer & Kevin C. Furman & George L. Nemhauser & Martin W. P. Savelsbergh & Jin-Hwa Song, 2012. "A Branch-Price-and-Cut Algorithm for Single-Product Maritime Inventory Routing," Operations Research, INFORMS, vol. 60(1), pages 106-122, February.
    13. Christiansen, Marielle & Fagerholt, Kjetil & Nygreen, Bjørn & Ronen, David, 2013. "Ship routing and scheduling in the new millennium," European Journal of Operational Research, Elsevier, vol. 228(3), pages 467-483.
    14. Gustavo Souto dos Santos Diz & Silvio Hamacher & Fabricio Oliveira, 2019. "A robust optimization model for the maritime inventory routing problem," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 675-701, September.

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