Quantitative Modeling of the Capacitated Multi-Level Production-Inventory Problem in Petroleum Industry
This research deals with the multi-level capacitated lot-sizing problem originating from the production system of a large typical oil refinery. A deterministic mixed integer programming model based on the minimization of setup, production, transportation and inventory costs is formulated to determine the production, inventory and transportation quantities in each time period under complicated material-balance and capacity constraints. A numerical example is subsequently provided to illustrate the broad applicability of the proposed model.
G. L. Liu et al., "Quantitative Modeling of the Capacitated Multi-Level Production-Inventory Problem in Petroleum Industry", Advanced Materials Research, Vols. 314-316, pp. 2008-2011, 2011