engleski

Solving the production-transportation problem with several modes of transportation

One of the important problems in the continuous production industries (such as petroleum industry) is the production-transportation problem. Let us suppose that there are several plants at different locations (refineries, for example) producing certain number of products and large number of customers of their products. Each plant can operate in several modes characterized by different quantities of products and variable production costs. The customers’ demand for each product during the considered time period is known. Furthermore, let us suppose that for each product there are several modes of transportation from plants to customers with corresponding unit transportation costs. The total capacity of each mode of transportation is known. The production-transportation problem with several modes of transportation consists of finding the production program for each plant as well as the transportation of products to the customers for which the sum of the production and transportation costs is minimized and for each customer its demand is satisfied from one plant only. The problem is formulated as a bilevel mixed-integer programming problem and illustrated by a numerical example.

Production-transportation problem; several modes of transportation with capacity constraints; bilevel mixed-integer problem

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