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Two-Stage Stochastic Programming for the Refined Oil Secondary Distribution With Uncertain Demand and Limited Inventory Capacity
Li, Zhenping1,2; Zhang, Yuwei1,2; Zhang, Guowei3,4
2020
Source PublicationIEEE ACCESS
ISSN2169-3536
Volume8Pages:119487-119500
AbstractIn recent years, more and more oil companies adopt initiative delivery mode to make the refined oil secondary distribution scheme. In this work, we focus on the optimization problem of refined oil secondary distribution based on the initiative distribution mode considering stochastic demand and the limited inventory capacity of each petrol station. We present a two-stage stochastic programming model that determines the replenishment quantity of each petrol station based on its existing stock and the available supply quantity of each oil depot, as well as transportation schedule. When the uncertainty in demand can be captured via a finite set of scenarios, the two-stage stochastic programming model is transformed into an equivalent deterministic mixed integer programming model that can be efficiently solved by CPLEX solver. The effectiveness of the two-stage stochastic programming model is verified by simulation on extensive computer-generated instances. To solve practical problems with a large number of scenarios, we propose a method to reduce the problem scale by merging similar scenarios. We demonstrate that compared to the optimal solution obtained from the model with all scenarios, the gap corresponding to the model with merged scenarios is always less than 1%. The results of the sensitivity analysis show that an increase in the inventory capacity leads to a decrease in the total cost within a certain range. The results of this study can help companies making refined oil secondary distribution plan.
KeywordRefined oil secondary distribution initiative distribution mode transportation stochastic demand limited inventory capacity two-stage stochastic programming
DOI10.1109/ACCESS.2020.3004849
Indexed BySCI
Language英语
Funding ProjectNational Natural Science Foundation of China[71771028] ; Beijing Natural Science Foundation[Z180005] ; Beijing Municipal University's High-Level Innovation Team Construction Project[IDHT20180510] ; Beijing Science and Technology Innovation Service Capacity Building-High-Grade, Precision and Advanced Subject Construction Project
WOS Research AreaComputer Science ; Engineering ; Telecommunications
WOS SubjectComputer Science, Information Systems ; Engineering, Electrical & Electronic ; Telecommunications
WOS IDWOS:000551812400001
PublisherIEEE-INST ELECTRICAL ELECTRONICS ENGINEERS INC
Citation statistics
Document Type期刊论文
Identifierhttp://ir.amss.ac.cn/handle/2S8OKBNM/51886
Collection中国科学院数学与系统科学研究院
Corresponding AuthorLi, Zhenping; Zhang, Yuwei
Affiliation1.Beijing Wuzi Univ, Sch Informat, Beijing 101149, Peoples R China
2.Capital Univ Econ & Business, Sch Management Engn, Beijing 100070, Peoples R China
3.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China
4.Univ Chinese Acad Sci, Sch Math Sci, Beijing 100049, Peoples R China
Recommended Citation
GB/T 7714
Li, Zhenping,Zhang, Yuwei,Zhang, Guowei. Two-Stage Stochastic Programming for the Refined Oil Secondary Distribution With Uncertain Demand and Limited Inventory Capacity[J]. IEEE ACCESS,2020,8:119487-119500.
APA Li, Zhenping,Zhang, Yuwei,&Zhang, Guowei.(2020).Two-Stage Stochastic Programming for the Refined Oil Secondary Distribution With Uncertain Demand and Limited Inventory Capacity.IEEE ACCESS,8,119487-119500.
MLA Li, Zhenping,et al."Two-Stage Stochastic Programming for the Refined Oil Secondary Distribution With Uncertain Demand and Limited Inventory Capacity".IEEE ACCESS 8(2020):119487-119500.
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