Modeling the Crude Oil Scheduling Problem with Integration with Lower Level Production Optimization and Uncertainty

This research is focused on the modeling and optimization of the crude oil scheduling problem in order to generate the most appropriate schedule for the unloading, charging, blending, and movement of crude oil in a refinery, which means obtaining the schedule that generates the lowest costs. Uncertainty, which is often present in these types of optimization problems, is also analyzed and taken into account for the resolution of crude oil scheduling problem. A comprehensive novel model is proposed to describe the upper level crude oil scheduling problem, generate an optimal solution for the mentioned problem, and allow integration with the lower level production optimization problem of a refinery. This integration is possible due to the consideration of total flows of the different types of crude oil instead of flows of a particular key component in the crude oil to linearize the upper level problem and generate a less complex model. The proposed approach incorporates all the logistical costs including the sea waiting, unloading and inventory costs together with the costs associated with the transfer of crude oil from one to another entity. Moreover, this model also offers the possibility of considering multiple tank types including storage and blending tanks throughout the supply chain and the incorporation of the capability of storing more than one crude oil type in the storage tanks during the schedule horizon. A comparative analysis is performed against other models proposed and preliminary results of integration with a lower operational level are provided. In order to take into account the possibility of uncertainty or fuzziness in the scheduling problem, for the first time an approach is proposed to face the resolution of this problem in order to obtain a more realistic scheduling of the allocations of crude oil. Fuzzy linear programming theory is used here to represent this uncertainty in order to find an optimal solution that takes into account the lack of precise information on the part of the decision maker without losing the linearity of the original system. Uncertainty in the minimum demand to be satisfied in the distillation unit according to the necessities of the market and the lack of precise information about certain costs involved in the operations throughout the supply chain are separately considered. Among the different approaches utilized in fuzzy linear programming, the flexible programming or Zimmermann method and its extension to fuzziness in objective functions are implemented. A comparison between the two cases studied and the crisp model is performed with the aim of determining the effect of these uncertainties in the schedule of the crude oils movements between the different entities in the supply chain and the total cost generated

Modelling of ill-known requirements and integration in production planning

Making decisions on the base of uncertain forecasts is one of the key challenges for efficient Supply Chain Management. This article suggests the use of the theory of possibility for building a procurement plan on the base of ill-known requirements. These requirements, expressed in quantities by date, may come from various sources: forecasts or orders for instance. The possible types of imperfection pervading requirement are analysed and a unified representation model is suggested. A method is then described for calculating a plausible demand by period without loss of information; it is illustrated on an example in the last section

Fuzzy Bi-level Decision-Making Techniques: A Survey

© 2016 the authors. Bi-level decision-making techniques aim to deal with decentralized management problems that feature interactive decision entities distributed throughout a bi-level hierarchy. A challenge in handling bi-level decision problems is that various uncertainties naturally appear in decision-making process. Significant efforts have been devoted that fuzzy set techniques can be used to effectively deal with uncertain issues in bi-level decision-making, known as fuzzy bi-level decision-making techniques, and researchers have successfully gained experience in this area. It is thus vital that an instructive review of current trends in this area should be conducted, not only of the theoretical research but also the practical developments. This paper systematically reviews up-to-date fuzzy bi-level decisionmaking techniques, including models, approaches, algorithms and systems. It also clusters related technique developments into four main categories: basic fuzzy bi-level decision-making, fuzzy bi-level decision-making with multiple optima, fuzzy random bi-level decision-making, and the applications of bi-level decision-making techniques in different domains. By providing state-of-the-art knowledge, this survey paper will directly support researchers and practitioners in their understanding of developments in theoretical research results and applications in relation to fuzzy bi-level decision-making techniques

A fuzzy optimization approach for procurement transport operational planning in an automobile supply chain

We consider a real-world automobile supply chain in which a first-tier supplier serves an assembler and determines its procurement transport planning for a second-tier supplier by using the automobile assembler's demand information, the available capacity of trucks and inventory levels. The proposed fuzzy multi-objective integer linear programming model (FMOILP) improves the transport planning process for material procurement at the first-tier supplier level, which is subject to product groups composed of items that must be ordered together, order lot sizes, fuzzy aspiration levels for inventory and used trucks and uncertain truck maximum available capacities and minimum percentages of demand in stock. Regarding the defuzzification process, we apply two existing methods based on the weighted average method to convert the FMOILP into a crisp MOILP to then apply two different aggregation functions, which we compare, to transform this crisp MOILP into a single objective MILP model. A sensitivity analysis is included to show the impact of the objectives weight vector on the final solutions. The model, based on the full truck load material pick method, provides the quantity of products and number of containers to be loaded per truck and period. An industrial automobile supply chain case study demonstrates the feasibility of applying the proposed model and the solution methodology to a realistic procurement transport planning problem. The results provide lower stock levels and higher occupation of the trucks used to fulfill both demand and minimum inventory requirements than those obtained by the manual spreadsheet-based method. (C) 2014 Elsevier Inc. All rights reserved.This work has been funded partly by the Spanish Ministry of Science and Technology project: Production technology based on the feedback from production, transport and unload planning and the redesign of warehouses decisions in the supply chain (Ref. DPI2010-19977) and by the Universitat Politecnica de Valencia project 'Material Requirement Planning Fourth Generation (MRPIV) (Ref. PAID-05-12)'.Díaz-Madroñero Boluda, FM.; Peidro Payá, D.; Mula, J. (2014). A fuzzy optimization approach for procurement transport operational planning in an automobile supply chain. Applied Mathematical Modelling. 38(23):5705-5725. https://doi.org/10.1016/j.apm.2014.04.053S57055725382

A Fuzzy Credibility-Based Chance-Constrained Optimization Model for Multiple-Objective Aggregate Production Planning in a Supply Chain under an Uncertain Environment

In this study, a Multiple-Objective Aggregate Production Planning (MOAPP) problem in a supply chain under an uncertain environment is developed. The proposed model considers simultaneously four different conflicting objective functions. To solve the proposed Fuzzy Multiple-Objective Mixed Integer Linear Programming (FMOMILP) model, a hybrid approach has been developed by combining Fuzzy Credibility-based Chance-constrained Programming (FCCP) and Fuzzy Multiple-Objective Programming (FMOP). The FCCP can provide a credibility measure that indicates how much confidence the decision-makers may have in the obtained optimal solutions. In addition, the FMOP, which integrates an aggregation function and a weight-consistent constraint, is capable of handling many issues in making decisions under multiple objectives. The consistency of the ranking of objective’s important weight and satisfaction level is ensured by the weight-consistent constraint. Various compromised solutions, including balanced and unbalanced ones, can be found by using the aggregation function. This methodology offers the decision makers different alternatives to evaluate against conflicting objectives. A case experiment is then given to demonstrate the validity and effectiveness of the proposed formulation model and solution approach. The obtained outcomes can assist to satisfy the decision-makers’ aspiration, as well as provide more alternative strategy selections based on their preferences

Fuzzy goal programming for material requirements planning under uncertainty and integrity conditions

"This is an Accepted Manuscript of an article published in International Journal of Production Research on December 2014, available online: http://www.tandfonline.com/10.1080/00207543.2014.920115."In this paper, we formulate the material requirements planning) problem of a first-tier supplier in an automobile supply chain through a fuzzy multi-objective decision model, which considers three conflictive objectives to optimise: minimisation of normal, overtime and subcontracted production costs of finished goods plus the inventory costs of finished goods, raw materials and components; minimisation of idle time; minimisation of backorder quantities. Lack of knowledge or epistemic uncertainty is considered in the demand, available and required capacity data. Integrity conditions for the main decision variables of the problem are also considered. For the solution methodology, we use a fuzzy goal programming approach where the importance of the relations among the goals is considered fuzzy instead of using a crisp definition of goal weights. For illustration purposes, an example based on modifications of real-world industrial problems is used.This work has been funded by the Universitat Politecnica de Valencia Project: 'Material Requirements Planning Fourth Generation (MRPIV)' (Ref. PAID-05-12).Díaz-Madroñero Boluda, FM.; Mula, J.; Jiménez, M. (2014). Fuzzy goal programming for material requirements planning under uncertainty and integrity conditions. International Journal of Production Research. 52(23):6971-6988. doi:10.1080/00207543.2014.920115S697169885223Aköz, O., & Petrovic, D. (2007). A fuzzy goal programming method with imprecise goal hierarchy. European Journal of Operational Research, 181(3), 1427-1433. doi:10.1016/j.ejor.2005.11.049Alfieri, A., & Matta, A. (2010). Mathematical programming representation of pull controlled single-product serial manufacturing systems. Journal of Intelligent Manufacturing, 23(1), 23-35. doi:10.1007/s10845-009-0371-xAloulou, M. A., Dolgui, A., & Kovalyov, M. Y. (2013). A bibliography of non-deterministic lot-sizing models. International Journal of Production Research, 52(8), 2293-2310. doi:10.1080/00207543.2013.855336Barba-Gutiérrez, Y., & Adenso-Díaz, B. (2009). Reverse MRP under uncertain and imprecise demand. The International Journal of Advanced Manufacturing Technology, 40(3-4), 413-424. doi:10.1007/s00170-007-1351-yBookbinder, J. H., McAuley, P. T., & Schulte, J. (1989). Inventory and Transportation Planning in the Distribution of Fine Papers. Journal of the Operational Research Society, 40(2), 155-166. doi:10.1057/jors.1989.20Chiang, W. K., & Feng, Y. (2007). The value of information sharing in the presence of supply uncertainty and demand volatility. International Journal of Production Research, 45(6), 1429-1447. doi:10.1080/00207540600634949Díaz-Madroñero, M., Mula, J., & Jiménez, M. (2013). A Modified Approach Based on Ranking Fuzzy Numbers for Fuzzy Integer Programming with Equality Constraints. Annals of Industrial Engineering 2012, 225-233. doi:10.1007/978-1-4471-5349-8_27DOLGUI, A., BEN AMMAR, O., HNAIEN, F., & LOULY, M. A. O. (2013). A State of the Art on Supply Planning and Inventory Control under Lead Time Uncertainty. Studies in Informatics and Control, 22(3). doi:10.24846/v22i3y201302Dubois, D. (2011). The role of fuzzy sets in decision sciences: Old techniques and new directions. Fuzzy Sets and Systems, 184(1), 3-28. doi:10.1016/j.fss.2011.06.003Grabot, B., Geneste, L., Reynoso-Castillo, G., & V�rot, S. (2005). Integration of uncertain and imprecise orders in the MRP method. Journal of Intelligent Manufacturing, 16(2), 215-234. doi:10.1007/s10845-004-5890-xGuillaume, R., Thierry, C., & Grabot, B. (2010). Modelling of ill-known requirements and integration in production planning. Production Planning & Control, 22(4), 336-352. doi:10.1080/09537281003800900Heilpern, S. (1992). The expected value of a fuzzy number. Fuzzy Sets and Systems, 47(1), 81-86. doi:10.1016/0165-0114(92)90062-9Hnaien, F., Dolgui, A., & Ould Louly, M.-A. (2008). Planned lead time optimization in material requirement planning environment for multilevel production systems. Journal of Systems Science and Systems Engineering, 17(2), 132-155. doi:10.1007/s11518-008-5072-zHung, Y.-F., & Chang, C.-B. (1999). Determining safety stocks for production planning in uncertain manufacturing. International Journal of Production Economics, 58(2), 199-208. doi:10.1016/s0925-5273(98)00124-8Inderfurth, K. (2009). How to protect against demand and yield risks in MRP systems. International Journal of Production Economics, 121(2), 474-481. doi:10.1016/j.ijpe.2007.02.005JIMÉNEZ, M. (1996). RANKING FUZZY NUMBERS THROUGH THE COMPARISON OF ITS EXPECTED INTERVALS. International Journal of Uncertainty, Fuzziness and Knowledge-Based Systems, 04(04), 379-388. doi:10.1142/s0218488596000226Jiménez, M., Arenas, M., Bilbao, A., & Rodrı´guez, M. V. (2007). Linear programming with fuzzy parameters: An interactive method resolution. European Journal of Operational Research, 177(3), 1599-1609. doi:10.1016/j.ejor.2005.10.002Jones, D. (2011). A practical weight sensitivity algorithm for goal and multiple objective programming. European Journal of Operational Research, 213(1), 238-245. doi:10.1016/j.ejor.2011.03.012Lage Junior, M., & Godinho Filho, M. (2010). Variations of the kanban system: Literature review and classification. International Journal of Production Economics, 125(1), 13-21. doi:10.1016/j.ijpe.2010.01.009Jung, J. Y., Blau, G., Pekny, J. F., Reklaitis, G. V., & Eversdyk, D. (2004). A simulation based optimization approach to supply chain management under demand uncertainty. Computers & Chemical Engineering, 28(10), 2087-2106. doi:10.1016/j.compchemeng.2004.06.006Koh, S. C. L. (2004). MRP-controlled batch-manufacturing environment under uncertainty. Journal of the Operational Research Society, 55(3), 219-232. doi:10.1057/palgrave.jors.2601710Lai, Y.-J., & Hwang, C.-L. (1993). Possibilistic linear programming for managing interest rate risk. Fuzzy Sets and Systems, 54(2), 135-146. doi:10.1016/0165-0114(93)90271-iLee, H. L., & Billington, C. (1993). Material Management in Decentralized Supply Chains. Operations Research, 41(5), 835-847. doi:10.1287/opre.41.5.835Lee, Y. H., Kim, S. H., & Moon, C. (2002). Production-distribution planning in supply chain using a hybrid approach. Production Planning & Control, 13(1), 35-46. doi:10.1080/09537280110061566Li, X., Zhang, B., & Li, H. (2006). Computing efficient solutions to fuzzy multiple objective linear programming problems. Fuzzy Sets and Systems, 157(10), 1328-1332. doi:10.1016/j.fss.2005.12.003Louly, M.-A., & Dolgui, A. (2011). Optimal time phasing and periodicity for MRP with POQ policy. International Journal of Production Economics, 131(1), 76-86. doi:10.1016/j.ijpe.2010.04.042Louly, M. A., Dolgui, A., & Hnaien, F. (2008). Optimal supply planning in MRP environments for assembly systems with random component procurement times. International Journal of Production Research, 46(19), 5441-5467. doi:10.1080/00207540802273827Mohapatra, P., Benyoucef, L., & Tiwari, M. K. (2013). Integration of process planning and scheduling through adaptive setup planning: a multi-objective approach. International Journal of Production Research, 51(23-24), 7190-7208. doi:10.1080/00207543.2013.853890Mula, J., & Díaz-Madroñero, M. (2012). Solution Approaches for Material Requirement Planning* with Fuzzy Costs. Industrial Engineering: Innovative Networks, 349-357. doi:10.1007/978-1-4471-2321-7_39Mula, J., Poler, R., & García, J. P. (2006). Evaluación de Sistemas para la Planificación y Control de la Producción/[title] [title language=en]Evaluation of Production Planning and Control Systems. Información tecnológica, 17(1). doi:10.4067/s0718-07642006000100004Mula, J., Poler, R., & Garcia, J. P. (2006). MRP with flexible constraints: A fuzzy mathematical programming approach. Fuzzy Sets and Systems, 157(1), 74-97. doi:10.1016/j.fss.2005.05.045Mula, J., Poler, R., & Garcia-Sabater, J. P. (2008). Capacity and material requirement planning modelling by comparing deterministic and fuzzy models. International Journal of Production Research, 46(20), 5589-5606. doi:10.1080/00207540701413912Mula, J., Poler, R., & Garcia-Sabater, J. P. (2007). Material Requirement Planning with fuzzy constraints and fuzzy coefficients. Fuzzy Sets and Systems, 158(7), 783-793. doi:10.1016/j.fss.2006.11.003Mula, J., Poler, R., García-Sabater, J. P., & Lario, F. C. (2006). Models for production planning under uncertainty: A review. International Journal of Production Economics, 103(1), 271-285. doi:10.1016/j.ijpe.2005.09.001Noori, S., Feylizadeh, M. R., Bagherpour, M., Zorriassatine, F., & Parkin, R. M. (2008). Optimization of material requirement planning by fuzzy multi-objective linear programming. Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 222(7), 887-900. doi:10.1243/09544054jem1014Olhager, J. (2013). Evolution of operations planning and control: from production to supply chains. International Journal of Production Research, 51(23-24), 6836-6843. doi:10.1080/00207543.2012.761363Peidro, D., Mula, J., Alemany, M. M. E., & Lario, F.-C. (2012). Fuzzy multi-objective optimisation for master planning in a ceramic supply chain. International Journal of Production Research, 50(11), 3011-3020. doi:10.1080/00207543.2011.588267Peidro, D., Mula, J., Jiménez, M., & del Mar Botella, M. (2010). A fuzzy linear programming based approach for tactical supply chain planning in an uncertainty environment. European Journal of Operational Research, 205(1), 65-80. doi:10.1016/j.ejor.2009.11.031Peidro, D., Mula, J., Poler, R., & Lario, F.-C. (2008). Quantitative models for supply chain planning under uncertainty: a review. The International Journal of Advanced Manufacturing Technology, 43(3-4), 400-420. doi:10.1007/s00170-008-1715-yPeidro, D., Mula, J., Poler, R., & Verdegay, J.-L. (2009). Fuzzy optimization for supply chain planning under supply, demand and process uncertainties. Fuzzy Sets and Systems, 160(18), 2640-2657. doi:10.1016/j.fss.2009.02.021Sabri, E. H., & Beamon, B. M. (2000). A multi-objective approach to simultaneous strategic and operational planning in supply chain design. Omega, 28(5), 581-598. doi:10.1016/s0305-0483(99)00080-8Selim, H., & Ozkarahan, I. (2006). A supply chain distribution network design model: An interactive fuzzy goal programming-based solution approach. The International Journal of Advanced Manufacturing Technology, 36(3-4), 401-418. doi:10.1007/s00170-006-0842-6Suwanruji, P., & Enns, S. T. (2006). Evaluating the effects of capacity constraints and demand patterns on supply chain replenishment strategies. International Journal of Production Research, 44(21), 4607-4629. doi:10.1080/00207540500494527Torabi, S. A., & Hassini, E. (2008). An interactive possibilistic programming approach for multiple objective supply chain master planning. Fuzzy Sets and Systems, 159(2), 193-214. doi:10.1016/j.fss.2007.08.010Torabi, S. A., & Moghaddam, M. (2012). Multi-site integrated production-distribution planning with trans-shipment: a fuzzy goal programming approach. International Journal of Production Research, 50(6), 1726-1748. doi:10.1080/00207543.2011.560907Zimmermann, H.-J. (1978). Fuzzy programming and linear programming with several objective functions. Fuzzy Sets and Systems, 1(1), 45-55. doi:10.1016/0165-0114(78)90031-

A Review of Production Planning Models: Emerging features and limitations compared to practical implementation

In the last few decades, thanks to the interest of industry and academia, production planning (PP) models have shown significant growth. Several structured literature reviews highlighted the evolution of PP and guided the work of scholars providing in-depth reviews of optimization models. Building on these works, the contribution of this paper is an update and detailed analysis of PP optimization models. The present review allows to analyze the development of PP models by considering: i) problem type, ii) modeling approach, iii) development tools, iv) industry-specific solutions. Specifically, to this last point, a proposed industrial solution is compared to emerging features and limitations, which shows a practical evolution of such a system

Fuzzy system dynamics and optimization with application to manpower systems

The dynamics of human resource recruitment and training in an uncertain environment creates a challenge for many policy makers in various organisations. In the presence of fuzzy manpower demand and training capacity, many companies fear losing critical human resources when their employees leave. As such, the development of effective dynamic policies for recruitment and training in a fuzzy dynamic environment is imperative

Application of Multi-Objective Optimization Based on Genetic Algorithm for Sustainable Strategic Supplier Selection under Fuzzy Environment

Purpose: The incorporation of environmental objective into the conventional supplier selection practices is crucial for corporations seeking to promote green supply chain management (GSCM). Challenges and risks associated with green supplier selection have been broadly recognized by procurement and supplier management professionals. This paper aims to solve a Tetra “S” (SSSS) problem based on a fuzzy multi-objective optimization with genetic algorithm in a holistic supply chain environment. In this empirical study, a mathematical model with fuzzy coefficients is considered for sustainable strategic supplier selection (SSSS) problem and a corresponding model is developed to tackle this problem. Design/methodology/approach: Sustainable strategic supplier selection (SSSS) decisions are typically multi-objectives in nature and it is an important part of green production and supply chain management for many firms. The proposed uncertain model is transferred into deterministic model by applying the expected value measure (EVM) and genetic algorithm with weighted sum approach for solving the multi-objective problem. This research focus on a multiobjective optimization model for minimizing lean cost, maximizing sustainable service and greener product quality level. Finally, a mathematical case of textile sector is presented to exemplify the effectiveness of the proposed model with a sensitivity analysis. Findings: This study makes a certain contribution by introducing the Tetra ‘S’ concept in both the theoretical and practical research related to multi-objective optimization as well as in the study of sustainable strategic supplier selection (SSSS) under uncertain environment. Our results suggest that decision makers tend to select strategic supplier first then enhance the sustainability. Research limitations/implications: Although the fuzzy expected value model (EVM) with fuzzy coefficients constructed in present research should be helpful for solving real world problems. A detailed comparative analysis by using other algorithms is necessary for solving similar problems of agriculture, pharmaceutical, chemicals and services sectors in future. Practical implications: It can help the decision makers for ordering to different supplier for managing supply chain performance in efficient and effective manner. From the procurement and engineering perspectives, minimizing cost, sustaining the quality level and meeting production time line is the main consideration for selecting the supplier. Empirically, this can facilitate engineers to reduce production costs and at the same time improve the product quality. Originality/value: In this paper, we developed a novel multi-objective programming model based on genetic algorithm to select sustainable strategic supplier (SSSS) under fuzzy environment. The algorithm was tested and applied to solve a real case of textile sector in Pakistan. The experimental results and comparative sensitivity analysis illustrate the effectiveness of our proposed model.Peer Reviewe