| Article ID: | iaor20113974 |
| Volume: | 41 |
| Issue: | 2 |
| Start Page Number: | 149 |
| End Page Number: | 163 |
| Publication Date: | Mar 2011 |
| Journal: | Interfaces |
| Authors: | Song Jin-Hwa, Furman Kevin C, Kocis Gary R, McDonald Michael K, Warrick Philip H |
| Keywords: | programming: integer, vehicle routing & scheduling, inventory, supply & supply chains |
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.