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```					           Marine Logistics:
Crude Oil Transportation

Abhinav Jha

Mentor: W. Art Chaovalitwongse

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DIMACS REU 2005               July 21, 2005
Motivation

Crude oil transportation cost
\$1.50-3.00 per barrel

10 million barrels crude oil
imported per day in 2003

ExxonMobil spent \$10 billion last year

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DIMACS REU 2005                         July 21, 2005
The Supply Chain
Production

Vessels

Demand
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DIMACS REU 2005                July 21, 2005
Goal
Model - scheduling
- routing
- inventory management
- production and demand profile

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DIMACS REU 2005                 July 21, 2005
Approach
Math Programming

Basic Model:

Objective function - transportation costs only

totcost = sum(v,i,j) (costs(i,j)*X(v,i,j))

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DIMACS REU 2005                       July 21, 2005
Constraints
- vessels
sum(v in vessel,i in lport) X(v,i,j) <=3 , for all j
sum(v in vessel,i in lport) X(v,i,j) >=1

sum(v in vessel,j in dport) X(v,i,j) =2, for all i

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DIMACS REU 2005                        July 21, 2005
Results

X(v,i,j) = 1 if vessel v
goes from port i to port j

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DIMACS REU 2005                      July 21, 2005
Currently
Model - travel time included
- vessels can make multiple trips
- production schedule
- demand schedule

Obj fn – trans costs + inv costs at load-ports

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Constraints

Travel time – a vessel can only be traveling
on one route at a time

- vessel capacities
- last day, all vessels at unload ports

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Future Work
Incorporate
• Flow rate – amount of oil that can be
• Draft limit – which ships can go to
certain ports

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Challenges
• Reduce dimensions of problem
• Tradeoff between variables and equations

LP techniques :
- Decomposition
- Lagrange Relaxation

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Thank you

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