Optimal Policies for Crude Oil Selection
In this paper, we investigate the crude oil selection problem derived from the production of a large typical oil refinery. A deterministic mixed integer programming model for making purchasing decisions in the refinery is proposed in which practical transportation requirements are considered. The objective is to select the varieties of crude oil and determine the purchasing, production and inventory quantities under complicated material-balance constraints and capacity constraints for minimizing the sum of purchasing, order, inventory and transportation costs. A numerical example indicates the extensive application of the presented model.
Zhijiu Ai, Xiaodong Zhang, Yun-Hae Kim and Prasad Yarlagadda
G. L. Liu et al., "Optimal Policies for Crude Oil Selection", Advanced Materials Research, Vol. 339, pp. 431-434, 2011