Method for Production Planning and Inventory Control in OilRenery

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.