Heuristic batch sequencing on a multiproduct oil distribution system

Real world planning and scheduling of complex oil supply chains appears as a challenging problem, which requires adequate tools that can aid the decision making process. The present work looks into the scheduling of a multiproduct pipeline and associated tank farm inventory management through a mixed integer linear model (MILP). The pipeline has a single origin and single destination and transports oil products and its batch sequencing is constrained by product quality. The pumping sequencing variables are used to define a continuous time scale (Relvas, S., Matos, H. A., Barbosa-Póvoa, A. P. F. D, Fialho, J., & Pinheiro, A. S. (2006). Pipeline scheduling and inventory management of a multiproduct distribution oil system. Industrial and Engineering Chemistry Research, 45, 7841–7855). In this way, these variables have a large impact on CPU time. Therefore, to improve the model performance an adequate identification of feasible products sequences is required. This is evident when solving real case studies. These facts motivate the development of a sequencing heuristic to be used prior to the model implementation. This approach provides a set of information on the most desirable sequences of products to be pumped to the pipeline. It uses information from one given scenario, such as priorities on the transportation and outputs for clients to be replenished. The heuristic is applied and validated using a real world scenario of a Portuguese oil products’ distribution company.