Method for Production Planning and Inventory Control in Oil Refinery

Takuji Imamura∗, Masami Konishi and Jun Imai

Division of Electronic and Information System Engineering

Graduate School of Natural Science and Technology

Okayama University

3-1-1, Tsushima-Naka Okayama, 700-8530

MRPII 30

Abstract

In this paper, we propose a simultaneous optimization method for inventory control and production planning problem for a chemical batch plant.

The plant consists of blending process, intermediate storage tanks and filling process. In the proposed method, the original problem is decomposed into production planning sub-problem and inventory control sub-problem.

Then the decision variables are optimized by alternately solving each sub-problem. The solution of the proposed method is compared with that of centralized optimization method. The effectiveness of the proposed method is investigated from numerical computational results.