A comprehensive annual delivery program for upstream liquefied natural gas supply chain

作者：Mutlu Fatih; Msakni Mohamed K; Yildiz Hakan; Soenmez Erkut; Pokharel Shaligram

来源：European Journal of Operational Research, 2016, 250(1): 120-130.

DOI：10.1016/j.ejor.2015.10.031

• OR in maritime industry
• Annual delivery planning problem
• LNG supply chain
• Large-scale optimization

Developing a cost-effective annual delivery program (ADP) is a challenging task for liquefied natural gas (LNG) suppliers, especially for LNG supply chains with large number of vessels and customers. Given significant operational costs in LNG delivery operations, cost-effective ADPs can yield substantial savings, adding up to millions. Providing an extensive account of supply chain operations and contractual terms, this paper aims to consider a realistic ADP problem faced by large LNG suppliers; suggest alternative delivery options, such as split-delivery; and propose an efficient heuristic solution which outperforms commercial optimizers. The comprehensive numerical study in this research demonstrates that contrary to the common belief in practice, split-delivery may generate substantial cost reductions in LNG supply chains.

• 出版日期2016-4-1