An MILP model for scheduling the operation of a refined petroleum products distribution system

Transportation is one of the core components of the oil supply chain which needs rigorous optimization tools. Refined product pipelines are the preferred transportation option compared with other ones such as rail, road tankers and coastal vessels because they are reliable and economical. The problem discussed in this paper is short-term scheduling of a generic oil products transportation system characterized by a multi-product pipeline that connects a unique refinery to several distribution centers serving local markets. A novel mixed integer linear programming (MILP) formulation based on a continuous representation in both time and volume scales is presented. The problem goal is to meet product demands at minimum total cost including pumping, interface, flow restart and ON/OFF pump switching costs. To illustrate the proposed approach, three real-world examples are solved. The results show significant improvements in solution quality coupled with a reduced in computational burden compared to previous similar works.