Abstract
We study the inventory and distribution operations encountered in oil and petrochemical industry. We show some special cases for the NP-complete problem, and propose polynomial time solution methods. We propose two approaches for the main problem. One of them makes use of the minimum cost flow formulation of the same problem under some assumptions, and the other one uses Benders Decomposition. In addition, we propose another problem and its formulation which involves time-windows for delivery, for which the same approaches can be applied. However, methodology or the results for the latter problem are not given.