A Mathematical Modelling and Optimization Approach for a Maritime Facility Location Transshipment Problem

Article type: Research Article

Authors: Al-Yakoob, Salem M.^{1; *} | Sherali, Hanif D.²

Affiliations: [1] Department of Mathematics, College of Science, Kuwait University, P.O. Box: 5969, Safat 13060, State of Kuwait | [2] Grado Department of Industrial and Systems Engineering (0118), Virginia Tech, Blacksburg, VA 24061, USA. E-mails: [email protected], [email protected]

Correspondence: [*] Corresponding author.

Abstract: This paper presents an optimization based mathematical modelling approach for a single source single destination crude oil facility location transshipment problem. We began by formulating a mixed-integer nonlinear programming model and use a rolling horizon heuristic to find an optimal location for a storage facility within a restricted continuous region. We next design a hybrid two-stage algorithm that combines judicious facility locations resulting from the proposed model into a previously developed column generation approach. The results indicate that improved overall operational costs can be achieved by strategically determining cost-effective locations of the transshipment facility.

Keywords: mixed-integer programming, vessel scheduling, transportation, inventory

Journal: Informatica, vol. 29, no. 4, pp. 609-632, 2018