Modeling and Optimization of Location Selection of Fuel Terminal Considering Vessels and Pipeline Operations

DOI

10.2991/978-94-6463-288-0_20How to use a DOI?

Keywords

Fuel Terminal; Location Selection; Coverage Days

Abstract

This study discusses mathematical modeling using the mixed-integer linear programming (MILP) technique for selecting the optimal fuel terminal location which considers not only aspects of ship and pipeline transportation, but also marine technical aspects. In addition, coverage days are also included in the model because of their important position in maintaining not only stock resilience, but also consumer serviceability. The model is searched for the optimal solution using branch and bound and tested on real cases of building new terminals in Indonesia. The solution produces the best location in the fuel supply chain network at the lowest cost and is able to maintain minimum coverage days from the current terminal. The total cost of the entire supply chain for the relocation of fuel terminal is IDR 127,508,400,000. The results of the sensitivity analysis show that the model is capable of dealing with parameter changes. It was concluded that the selected terminal should prepare for the field conditions of the three parameters, considering the potential average additional cost increase of up to 200%. However, it is necessary to pay close attention to the parameters for the cost of building pipes that are sensitive to changes. In the future, it is necessary to consider a model that is capable of finding solutions from alternative continuous locations.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - F. Qudsi
AU  - R. T. Cahyono
AU  - N. F. Sa’idah
PY  - 2023
DA  - 2023/11/19
TI  - Modeling and Optimization of Location Selection of Fuel Terminal Considering Vessels and Pipeline Operations
BT  - Proceedings of the 4th International Conference on Informatics, Technology and Engineering 2023 (InCITE 2023)
PB  - Atlantis Press
SP  - 223
EP  - 234
SN  - 2589-4943
UR  - https://doi.org/10.2991/978-94-6463-288-0_20
DO  - 10.2991/978-94-6463-288-0_20
ID  - Qudsi2023
ER  -