Journal
INTERFACES
Volume 41, Issue 2, Pages 149-163Publisher
INFORMS
DOI: 10.1287/inte.1100.0508
Keywords
inventory routing; maritime shipping; refinery feedstocks
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ExxonMobil annually transports significant volumes of vacuum gas oil (VGO) from supply points in Europe to refineries in the United States. Optimizing these transportation costs by using modern mathematical programming technology can provide significant cost savings. We developed a mixed-integer programming formulation for VGO routing and inventory management, and we integrated it into a decision support tool to enable experienced traders and schedulers to further improve the performance of ExxonMobil's downstream supply chain.
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