Marine Logistics: Crude Oil Transportation

1. Marine Logistics: Crude Oil Transportation Abhinav Jha Mentor: W. Art Chaovalitwongse

2. 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

3. The Supply Chain Production Loading Ports Vessels Unloading Ports Demand

4. Goal Model - scheduling - routing - inventory management - production and demand profile

5. Approach Math Programming Basic Model: Objective function - transportation costs only totcost = sum(v,i,j) (costs(i,j)*X(v,i,j))

6. Constraints • Inventory Balance- loading/discharging ports - vessels Unloading ports: 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 Loading ports: sum(v in vessel,j in dport) X(v,i,j) =2, for all i

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

8. Currently Model - travel time included - vessels can make multiple trips - production schedule - demand schedule Obj fn – trans costs + inv costs at load-ports

9. Constraints Inventory balance- loading ports and vessels Travel time – a vessel can only be traveling on one route at a time Logical - can’t go from unload to load port - vessel capacities - last day, all vessels at unload ports

10. Future Work Incorporate • Demand schedule at unloading ports • Flow rate – amount of oil that can be loaded or unloaded per day • Draft limit – which ships can go to certain ports

11. Challenges • Reduce dimensions of problem • Tradeoff between variables and equations LP techniques : - Decomposition - Lagrange Relaxation

12. Thank you