Two-Level Approach For Scheduling Multiproduct Oil Distribution Systems

A core component of the oil supply chain is the distribution of products. Of the different types of distribution modes used, transportation by pipeline is one of the safest and most cost-effective ways to connect large supply sources to local distribution centers, where products are loaded into tanker trucks and delivered to customers. This paper presents a two-level optimization approach for detailed scheduling of tree-like pipeline systems with a unique refinery and several distribution centers. A mixed-integer linear programming (MILP) formulation is tackled in each level, with the upper and lower level models providing the aggregate and detailed pipeline schedules, respectively. Both models neither discretize time nor divide a pipeline segment into packs of equal size. Solutions to two case studies, one using real-life industrial data, show significant reductions in both operational cost and the CPU time with regards to previous two level approaches.