Operational optimization analysis of industrial operators' fleet

The industrial operation is one of the three basic modes of shipping operation with Liner and Tramp operations. Industrial operators usually control vessels of their own or on a time charter to minimize the cost of shipping their cargoes. Such operations abound in shipping of bulk commodities, such as oil, chemicals and ores. This work is concerned with an operational optimization analysis of the fleet owned by a major oil company, a typical industrial operator. The operational optimization problem of the fleet of a major oil company is divided into a two-phase problem. The front end corresponds to the optimization problem of the transportation of crude oil, product mix, and the distribution of product oil to comply with the demand of the market. The back end tackles the scheduling optimization problem of the fleet to meet the seaborne transportation demand derived from the front end. A case study reflecting the practices of an international major oil company is demonstrated to make clear the underlying ideas.