Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6895974 | European Journal of Operational Research | 2016 | 31 Pages |
Abstract
Developing a cost-effective annual delivery program (ADP) is a challenging task for liquefied natural gas (LNG) suppliers, especially for LNG supply chains with large number of vessels and customers. Given significant operational costs in LNG delivery operations, cost-effective ADPs can yield substantial savings, adding up to millions. Providing an extensive account of supply chain operations and contractual terms, this paper aims to consider a realistic ADP problem faced by large LNG suppliers; suggest alternative delivery options, such as split-delivery; and propose an efficient heuristic solution which outperforms commercial optimizers. The comprehensive numerical study in this research demonstrates that contrary to the common belief in practice, split-delivery may generate substantial cost reductions in LNG supply chains.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Fatih Mutlu, Mohamed K. Msakni, Hakan Yildiz, Erkut Sönmez, Shaligram Pokharel,