Optimal Sizing and Contracting of Vehicle Fleets Under Uncertainty for Upstream Operations in the Oil and Gas Industry

PRESSER, DEMIAN J.; CAFARO, VANINA G.; CAFARO, DIEGO C.

IEEE International Conference on Industrial Engineering and Engineering Management

IEEE

Año: 2021; p. 98 - 102

The supply of materials, equipment and services is a critical logistic process for upstream operations in the oil and gas industry. Sizing fleets to timely supply resources is critical to keep rigs running and wells producing. This work presents a novel mixed integer linear programming formulation to address the fleet sizing and contracting problem under uncertainty. A two-stage stochastic optimization approach is proposed, providing a rigorous treatment of the uncertainty associated with the demand for vehicles and availability from suppliers. The mathematical formulation aims to determine the optimal fleet size and contract agreements such that the service level accomplished by the fleet over the time horizon meets the minimum expected total cost, including contract fees, and penalties for the unsatisfied demand. A real-world study case is solved and discussed to draw interesting conclusions