Practical Applications of Linear Programming to Shell's Distribution Problems

Improved capabilities and sophistication of mathematical programming systems (model builders, report generators, and mixed integer codes) have considerably expanded the size and scope of real life applications that can be handled. This paper is restricted to applications in the distribution of petroleum products. A linear programming formulation of Shell's distribution network with three products handled by three transportation systems between four sources of product and a large number of transshipment points and terminals is discussed, with emphasis on cost logistics, ranking of various alternatives, and some applications of mixed integer formulations.