Article ID: | iaor20132552 |
Volume: | 64 |
Issue: | 6 |
Start Page Number: | 848 |
End Page Number: | 863 |
Publication Date: | Jun 2013 |
Journal: | Journal of the Operational Research Society |
Authors: | Rnnqvist M, Flisberg P, Bengtsson J, Bredstrm D |
Keywords: | transportation: water, scheduling, simulation: applications |
Refinery operation planning is a complex task since refinery processes and inventories are tightly interconnected. We study refinery planning when ships are loaded with a blend of components and where arrival times of ships are uncertain. Any delay in ship arrival may result in overfull component tanks which results in less efficient blending alternatives, reduced process operations or even shut downs. We propose a planning approach where we use robust optimization as a decision tool. By using robust optimization uncertainty in arrival times is explicitly dealt with and the resulting plan and schedule will always be feasible. The approach includes a flexible way to describe and model uncertainties. To compare the robust approach with a traditional deterministic approach, we use a simulation process. Computational results from a case study and simulations show that the proposed methodology is substantially better than a deterministic approach.