Computers and Mathematics with Applications 56 (2008) 891897

www.elsevier.com/locate/camwa

The multi-product pipeline scheduling system

S.A. MirHassani , M. Ghorbanalizadeh
Faculty of Mathematics and Computer Science, Amirkabir University of Technology, Tehran, Iran
Received 22 January 2006; received in revised form 20 October 2007; accepted 4 January 2008

Abstract
This paper presents an integer programming approach to oil derivative transportation scheduling. The system reported is
composed of an oil refinery, one multi-branch multi-product pipeline connected to several depots and also local consumer markets
which receive large amounts of refinery products. Batches of refined products and grades are pumped back-to-back in the pipeline,
without any separation device between them. The sequence and lengths of such pumping runs should be carefully selected in order
to meet market demands while satisfying many pipeline operational constraints such as minimum interfaces.
c 2008 Elsevier Ltd. All rights reserved.

Keywords: Petroleum; Transportation; Multi-product pipeline; Distribution scheduling; IP formulation

1. Introduction
Decision making is inherent to all aspects of industrial, business and social activities, in all of which, difficult
tasks must be accomplished. One of the most reliable decision support tools available today is Optimization, an
interdisciplinary category in which Mathematics and Computer Sciences meet.
The purpose of this work is to build and solve effectively realistic mathematical models of the situation under
study, allowing the decision makers to explore a huge variety of possible alternatives. In reality it is very complicated
to work it out. Many of these models (have large number of decision variables) are large in terms of the number of
the decision variables. The use of optimization techniques for scheduling has received growing interest. For large
consumer markets, where the demand for oil and its derivatives is high, oil companies are willing to expand pipeline
utilization regarding its low operating cost. Pipelines must connect refineries to local distribution centers. The products
should be then sent to consumer markets.
Pipelines have been used mainly by the Petroleum Industry for the last 40 years for transportation of petroleum
and its derivatives. The related scheduling activities to product distribution have been the focus for at least
30 years. The annual transportation costs of consumer goods have surpassed billions dollars. These high costs
should be justified for large volumes of products. Distribution and transportation operations of petroleum products
can be carried out via roads, railroads, vessels and pipelines. The latter one has usually been utilized for crude
oil transportation from terminals to refineries. Pipeline transportation is the most reliable and economical mode
Corresponding author.

E-mail addresses: A MirHassani@aut.ac.ir, A mirhassani@hotmail.com (S.A. MirHassani).

c 2008 Elsevier Ltd. All rights reserved.
0898-1221/$ - see front matter
doi:10.1016/j.camwa.2008.01.035

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S.A. MirHassani, M. Ghorbanalizadeh / Computers and Mathematics with Applications 56 (2008) 891897

Fig. 1. A multi-product pipeline.

for large amounts of liquid and gaseous products. Pipelines provide an economic fluid transportation mode for
petroleum systems, especially when large amounts of petroleum derivatives have to be pumped for long distances.
In practice the pipelines are divided into several parts and experienced operators manage the oil transfer between
different parts. This approach may be cost expensive and may be even non-efficient. Several researchers have
attempted to develop models and techniques for short-term refinery scheduling. See, Shah [1], Pinto et al. [2], Li
et al. [3], Magalhaes et al. [4]. They have applied a discrete-time mixed integer linear programming (MIP) model
for unidirectional crude oil scheduling. Magatao et al. [5] has suggested an MIP approach to aid the decisionmaking process for schedule commodities on a pipeline without any branches. They consider a straight pipeline
that starts from a refinery and then meets depots one after the other. Sasikumar et al. [6] has studied a scheduling
problem considering one pipeline which receives products from a refinery and supplies several depots connected to
it. Reddy [7] has used a continuous-time formulation and an iterative algorithm to eliminate the crude composition
discrepancy. The integration of the process system and utility system for better energy utilization has been offered
by Zhang [8]. In Milidiu [9], the problem of finding a feasible solution to pipeline petroleum transportation
is proved to be NP-hard. For more details about how pipelines work and their importance in the oil industry,
see [10].
This paper is organized as follows. Section 2 describes the problem and its conceptual model in general. Section 3
presents our modeling framework covering parameters, variables and relevant mathematical representation. The
real-life problem and its computational results have been reported in Section 4. Finally, Section 5 contains some
conclusions and sums up the paper.
2. Problem description
Product pipelines are capable of delivering high volumes of refined petroleum products from major supply sources
such as refineries or bulk terminals to industry-owned distribution centers near market areas. They represent the
most reliable and cost-effective way for transporting large quantities of oil derivatives over long distances. Products
are then conveyed from depots to the market mostly by tanker trucks. Pipelines carry a wide range of products,
including various grades of motor gasoline, jet fuel, diesel fuel, heating oil and domestic kerosene on behalf
of major oil companies. A measure of the importance of oil pipelines is the fact that nearly two-thirds of all
petroleum products are carried by them. Often, crude oil and refined petroleum products are not to be transported
in the same pipeline. Batches of different refined products and grades are pumped back-to-back in the pipeline,
usually without any devices separating them. Mechanical separators which are called pigs are seldom used in
multi-product pipeline (see Fig. 1). Some mixing products occur at the interface of two adjacent batches. The
interface material resulting from the pumping batches of different grades of the same product one after another,
for example premium and regular gasoline, is typically mixed with the lower grade batch, thereby reducing the
batch size of the higher quality product. Moreover, the interface between the two different products, like gasoline
and a distillate produces a mixture, the so-called trans-mix. In this case, the trans-mix is cut out and sent to
separate tanks, and reprocessed subsequently in full-scale refineries or special purpose-built facilities. The actual
volume of the mixed material generated depends on some physical parameters such as the pipeline diameter, the
flow regime, the traveled distance, the topography and types of adjacent products. At the oil refinery, each tank is
usually dedicated to holding a single petroleum product to avoid purge and cleaning operations during the routine
unloading and loading cycle. Moreover, different oil derivatives are delivered into distinct containers at nominated
depots.
Because of the magnitude and complexity of an oil system, a complete logistic project with reasonable levels of
detail becomes infeasible.

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Fig. 2. A multi-product Y-shape pipeline.

Fig. 3. An example of active and inactive path.

3. The mathematical model

Here we present a model for the pipeline transportation of petroleum products. The pipeline is considered as a set
of segments with equal volumes that connect the refinery to different depots. A path is a set of successive segments
located between the refinery and a specific depot. Defining the concept of path enables us to handle straight pipelines
(Fig. 1) as well as Y-shaped pipelines (Fig. 2).
In each time period, only one product is pumped into the pipeline in the refinery and at the same time one product
(not necessarily the same type of product) is removed from the pipeline at a depot because the pipeline is always full.
Therefore, there is at most one active path at each time period. A segment in an active path is called an active segment.
A possible configuration is sketched in Fig. 3.
In order to model and solve the above problem, we formulate it with AIMMS using the following identifiers. First
of all, we need to define sets and indices.
Sets:

D = {1, . . . , D} Set of all depots and d D.

S = {1, . . . , S} Set of pipeline segments and s, r S.
P = {1, . . . , P} Set of refined products and p, q P.
T = {1, . . . , T } Set of time periods and t T .

Data:

Ds,d = 1 If segment s is located before depot d (connected directly to depot); otherwise 0.

Ps,d = 1 If segment s lies in the path of depot d; otherwise 0.
Br,s = 1 If segment r is located before segment s; otherwise 0.
Isp = 1 If the initial content of segment s is product p; otherwise 0.
Demd, p Maximum demand at depot d for product p.
Demd, p Minimum demand at depot d for product p.
I R p Initial volume of product p at refinery.
P V p,t The production volume of product p at time period t.

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C p,q The compensation of pumping product p immediately after product q.

F p,q = 1 If pumping product p after q is prohibited: otherwise 0.
Q A constant number represents the segment volume.
Variables (the variables start with X):
X R p,t = 1 If product p is pumped into the pipeline during time period t; otherwise 0 (Binary variables).
X Ss, p,t = 1 If the content of segment s at time period t is product p; otherwise 0 (Binary variables).
X Dd, p,t = 1 If depot d receives product p at time period t; otherwise 0. (Binary variables)
X I p,q,t = 1 If product p is pumped immediately after product q at time period t. otherwise 0.
X V R p,t The volume of product p in refinery at time period t.
X V Dd, p The volume of product p in depot d.
X Y 1r,s, p,t = 1 If segment s is active at time period t (X Y 3s,t = 1) and the content of segment r is product p at
time period t 1 (X Sr, p,t1 = 1); otherwise 0; (Binary variables).
X Y 2s, p,t = 1 If segment s is active at time period t (X Y 3s,t = 1) and its content is product p at time period
t 1 (X Ss, p,t1 = 1); otherwise 0; (Binary variables).
X Y 3s,t = 1 If segment s is in an active path at time period t; otherwise 0; (Binary variables).
X Y 4 p,t = 1 If the first segment is active at time period t (X Y 31,t = 1) and its content is product p at time period
t 1(X S1, p,t1 = 1); otherwise 0; (Binary variables).

The objective function

The aim of the objective function is to account for the number of interfaces. The best situation is to arrange a
pumping schedule with a minimum number of interfaces. Therefore, we would have the following summation to be
minimized:
P
C p,q X I p,q,t .

Model
Min Z =

C p,q X I p,q,t .

p,q,t

Through this objective function, we can penalize different types of interfaces. There is no penalty if two successive
segments carry the same product. The highest penalties are considered for two products that are more different.
Constraints
X
X R p,t 1 t.
(1)
p

Only one product can be pumped into the pipeline at each time period.
X
X
X R p,t =
X Dd, p,t t.
p

(2)

d, p

These constraints guarantee the balance between the volume of the product that is pumped into the pipeline and the
product that is removed from it at each time period.
2 X Y 1r,s, p,t X Y 3s,t + X Sr, p,t1

r, s, p, t

(3a)

1 + X Y 1r,s, p,t X Y 3s,t + X Sr, p,t1 r, s, p, t

2 X Y 2s, p,t X Y 3s,t + X Ss, p,t1 s, p, t

(3b)
(3c)

1 + X Y 2s, p,t X Y 3s,t + X Ss, p,t1

(3d)

s, p, t.

The constraints (3a)(3d) are a linear adaptation of the requirements that are used to define variables X Y 1, X Y 2.
2X Y 4 p,t X Y 31,t + X S1, p,t1

p, t

1 + X Y 4 p,t X Y 31,t + X S1, p,t1 p, t

X S1, p,t X S1, p,t1 X Y 4 p,t p, t
X
X Y 3s,t =
Ps,d X Dd, p,t s, t.
d, p

(4a)
(4b)
(4c)
(4d)

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The constraints (4a)(4d) are a linear adaptation of the requirements that are used to define variables XY3, XY4.
X Ss, p,t = X Y 1r,s, p,t X Y 2s, p,t + X Ss, p,t1

r, s, p, t|Br,s = 1.

(5)

These constraints set the content of each segment according to its activity and the condition of the preceding segment.
X
X Ss, p,t = 1 s, t.
(6)
p

It supposes that the pipeline is always full and only one product is allowed for each segment at any time period, so
constraint (6) imposed this condition.
X Iq, p,t X S1, p,t1 + X Rq,t 1
0 X Ss, p,t + X Ss+1,q,t 1

(7a)

q, p, t

d, q, p, t|Ds,d = 1, d < D, F p,q = 1.

(7b)

According to the content of the first segment and the type of product pumped into the pipeline in the refinery, or
removed from pipeline in the depots, the type of interfaces will be distinguished in constraints such as (7a) and (7b).
X S1, p,t X R p,t

(8)

p, t.

The refined product will always be pumped into the first segment.
(9a)
(9b)

X Ss, p,0 = Is, p s, p

X V R p,0 = IR p p.
The constraints (9a) and (9b) initiate the pipeline segments and the volume of the product in the refinery.
X V R p,t = X V R p,t1 + P V p,t Q X R p,t

p, t.

These constraints would help in computing the volume of the refined products available in the refinery.
X
X V Dd, p =
Q X Dd, p,t d, p

(10)

(11)

X Dd, p,t =

X Ss, p,t1

d, p, t.

(12)

s|Ds,d =1

These constraints compute the volume of the refined products received at depots and guarantee the consistency
between the received products and the content of the segment connected to the depots.
X V Dd, p Demd, p
X V Dd, p Demd, p

d, p
d, p.

(13a)
(13b)

The simple upper and lower bounds are considered for minimum and maximum products demand at depots.
The model itself is made up of logical and operational constraints. The problem set out as a complete model
(1)(13) is a very large MIP problem, even when considering a small number of time intervals (say 30).
4. Experimental results
Case I: This example illustrates a case with 72 h of the scheduling horizon (sixteen 4.5-h time slots in the discretetime model) and one refinery with four different products p1 , . . . , p4 and three depots. The multi-branch pipeline is
considered as 9 segments with equal volumes connecting the refinery to the three depots. The depots and pipeline
segments are shown in Fig. 2. Each depot has a specific path with the beginning in the refinery and includes a set of
segments as described in Table 1. The segments that are directly connected to depots are shown with bold cross. Since
the pipeline is always full, we have to consider its original status before running the model. The initial content of each
segment is introduced in the fourth row. It shows that four types of products P1 , P2 , P3 , and P4 have occupied the
pipeline. The final condition is reported in the last row.
Table 2 presents the operation schedule which has been obtained from the proposed discrete-time model. The
schedule has the following noteworthy features. The results ensure that liquids will continuously be pumped into the

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Table 1
Initial and final settings in pipeline (Case I)

Path 1
Path 2
Path 3
Initial content
Final content

S1

S2

S3

P1
P3

P2
P3

P3
P3

S4

S5

S6

S7

P1
P3

P2
P3

P3
P3

P4
P2

S8

P1
P3

Depots

S9

D1
D2
D3

P2
P3

Table 2
The sixteen period schedule
Time

T1

T2

T3

T4

T5

T6

T7

T8

T9

T10

T11

T12

T13

T14

T15

T16

Prod.
D1
D2
D3

P1

P1

P1

P3
P3

P3

P3

P3

P3

P3
P1

P3

P3
P3

P3
P3

P3

P3
P3

P3
P3

P3
P3

P2

P1

P2

P1

P1

P1

P4

P3
P1

Table 3
Initial settings in pipeline (Case II)

Distance from refinery (km)

No. of segments
Monthly demand (m3 )

Pipeline initial condition

P1
P2
P3

Depot 1

Depot 2

Depot 3

91
2
9455 11 500
0
0
P1 P1

178
4
55 800 57 500
2117 2300
0
P2 P2

319
7
42 315 43 700
29 760 29 900
32 085 32 200
P3 P3 P3

pipeline until demands in all depots are fulfilled. The second row shows the sequence of the product pumped into the
pipeline. The type of product that is received at depots 1, 2 and 3 is reported in rows D1 , D2 , and D3 respectively.
Case II: We consider a short-term real-life-scheduling problem where a refinery must distribute three products,
Gas oil (P1 ), Kerosene (P2 ) and Gasoline (P3 ) among three depots connected to a single pipeline which has been
divided into seven segments where segments 2, 4, and 7 are able to feed depots 1, 2 and 3 respectively. It is also
considered that P1 should not interface with P3 . The main parameters such as real and estimated demands are given
in Table 3.
The resulting MIP model that has deduced reasonable results for case II using the formulation has been presented
in the former section. For segment with volume Q = 2300 m3 , it is required more than 77 time slots each one of
which lasts 9 h. Therefore we are faced with a huge intractable model. Because of the size of the problem (10 546
variables, majority integer and 16 223 constraints) it is optimally impossible to solve this model. This may be justified
with a feasible solution of longer CPU time. So for developing a procedure of this approach, it is necessary to find
a realistic solution together with a reasonable computational time. For this sake we split the time horizon into three
parts which practically is more realistic which leads us to a more manageable problem. This drastically reduced the
CPU time; however for real-life case II the optimal solution has not been found. In this case the solution should be
found within almost 3072 s.
All models were implemented by AIMMS modeling software [11] using a PC platform with Pentium IV 2.4 GHz
processor. The MIP solver chosen was CPLEX [12].
5. Conclusion
In this paper, we have presented a modeling framework for a real-life-scheduling problem in an oil industry. The
problem consists of several refinery tanks, one multi-product multi-branch pipeline and some distribution depots. The
major challenge in this problem is to monitor the product content of a pipeline subject to intermittent operations. This

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MIP model is based on discrete-time and a division of the pipeline by equal size segments. The pipeline may branch
at any point and make a Y-junction shape. In this work an exclusive computational experiment for real samples has
been done. The proposed approach gives us an opportunity to schedule the pipeline operations for much longer time
horizons. Interface volumes are explicitly considered by the problem formulation and their positions can be tracked
along the time horizon. This approach may generate problems that are computationally intractable (a disadvantage)
depending on the distinction of adopted levels. A stochastic version of this model is currently under investigation
which takes into account the uncertain nature of demands.
Acknowledgments
We are thankful to Dr. Hatam and to anonymous referees for their valuable comments.
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