An optimal run-mode scheduling for oil refinery production-a case study on Taiwan CPC Corporation

The refinery industries have been going through a very difficult time from fierce competition and the high price of crude oil. To increase compatibility, it is essential to increase efficiency in the inventory, production and transportation. Refineries start generating revenues while their products are sold in the market. This article examines the possible costs of additional inventories and recurrent times of refineries derived from early or late shipment in a continuous production system. Then, based on the developed mathematical programming model, an optimal production structure with the minimum total cost of production, inventory and start-up is proposed. Tolerance analysis is conducted to cope with uncertain environment. A case study on applying the proposed model to perform scenario analysis for CPC Corporation, Taiwan is demonstrated. The results show that the developed model is able to provide useful information towards developing cost-effective oil refinery strategies.