Optimal storage design for a multi-product plant: A non-convex MINLP formulation

We discuss a tank design problem for a multi product plant, in which the optimal cycle time and the optimal campaign size are unknown. A mixed-integer nonlinear programming (MINLP) formulation is presented, where non-convexities are due to the tank investment cost, storage cost, campaign setup cost and variable production rates. The objective of the optimization model is to minimize the sum of the production cost per ton per product produced. A continuous-time mathematical programming formulation is proposed and several extensions are discussed. The model is implemented in GAMS and computational results are reported for the two global MINLP solver BARON and LINDOGlobal as well as several nonlinear solvers available in GAMS.