Simultaneous production and distribution of industrial gas supply-chains |
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| Affiliation: | 1. Computer Aided Process Engineering Group (CAPEG) Technological National University; Faculty of Rosario (UTN-FRRo); Zeballos 1341, S2000BQA, Rosario, Argentina;2. French Argentine International Center for Information and Systems Sciences (CIFASIS - CONICET - UNR - AMU); 27 de Febrero 210 bis, S2000EZP, Rosario, Argentina;1. School of Management, Xi''an Jiaotong University, Xi''an 710049, China;2. Department of Systems Engineering & Engineering Management, City University of Hong Kong, Hong Kong, China;3. The Key Lab of the Ministry of Education for Process Control & Efficiency Engineering, Xi''an 710049, China;1. H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, GA, United States;2. Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, CA, United States |
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| Abstract: | In this paper, we propose a multi-period mixed-integer linear programming model for optimal enterprise-level planning of industrial gas operations. The objective is to minimize the total cost of production and distribution of liquid products by coordinating production decisions at multiple plants and distribution decisions at multiple depots. Production decisions include production modes and rates that determine power consumption. Distribution decisions involve source, destination, quantity, route, and time of each truck delivery. The selection of routes is a critical factor of the distribution cost. The main goal of this contribution is to assess the benefits of optimal coordination of production and distribution. The proposed methodology has been tested on small, medium, and large size examples. The results show that significant benefits can be obtained with higher coordination among plants/depots in order to fulfill a common set of shared customer demands. The application to real industrial size test cases is also discussed. |
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| Keywords: | Supply-chain optimization Industrial gases Production planning Inventory routing problem Multi-period model Mixed-integer linear programming |
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