An application of capacitated lot-sizing model in petroleum sector

Abstract

In this thesis, we study capacitated lot-sizing problem with special feature, applicable to the petroleum refinery sector. In our model, the end-products should be stored in item-specific and capacitated storage tanks during pre-determined lead-time. Our aim is to find the optimum production schedule resulting minimum total cost whilst satisfying customer demand. To solve this problem in a reasonable amount of time, we propose a branch-and-cut algorithm. We perform experiments based on the data gathered from Turkish Petroleum Refineries Corporation. In order to evaluate our algorithm, we compare the results of our algorithm and the solution results of the optimization software.