Upstream logistic transport planning in the oil-industry: A case study

Abstract

Nowadays, oil companies have to deal with an increasingly competitive environment. In this sense, the optimization of operational processes to enhance efficiency is crucial. This article addresses the design of a decision support tool for the inland upstream transport logistics in the oil industry based on a case of study in Argentina. This problem is traditionally difficult to solve for managers due to the large number of demand facilities scattered on a large geographic area that have to be served and the consideration of several operational requirements, such as maximum allowable travel times for vehicles, availability of a limited fleet size with a small number of drivers, plus the usual demand constraints as well as those arising from security risks derived from the incompatibility of chemical products. A novel mathematical formulation and a constructive heuristic are proposed in order to address this problem. The results allow to reduce the time that the company spends for obtaining a feasible distribution plan that minimizes the time horizon of the distribution schedule provided to the clients and enhances customer satisfaction.