06 naman mrpl

8/7/2019 06 Naman MRPL

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APPLICATION OF

PERATIONS RESEARCH N MRPL

Presented by :- Naman Gupta(16)

MBA(ET)


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Content Introduction

Challenges

LP Models

Benefits

Key to successful implementation


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Introduction Mangalore Refinery and Petrochemicals Limited

(MRPL), located at Katipalla, Mangalore

It deals in petroleum product

It had a turnover of US$ 8 billion during last yearThe refinery is processing about 12.5 million

tonnes of crude per year


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Introduction to Operation Research

Operational research, also known as operationsresearch, is an interdisciplinary mathematicalscience that focuses on the effective use oftechnology by organizations.

Employing techniques from other mathematicalsciences --- such as mathematical modeling,statistical analysis, and mathematicaloptimization--- operations research arrives at optimal or near-

optimal solutions to complex decision-makingproblems.


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CONTD.

Operational research encompasses a wide range ofproblem-solving techniques and methods applied in thepursuit of improved decision-making and efficiency.

Some of the tools used by operational researchers arestatistics, optimization, probability theory, queuingtheory, game theory, graph theory, decision analysis,mathematical modeling and simulation.


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ChallengesCrude selection

Crude transportation

Crude processingProduct demands

Profit Maximization


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P Model LP model contains the end-to-end configuration of the

refinery with a detailed representation of primary andsecondary processing units, blending facilities, powerand utilities.

The model can have different time period variants to meetdifferent planning objectives associated with AnnualPlanning (1X4 quarter), Quarterly Planning (1X3

months) and Monthly Planning (1X4 weeks).


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ContdThis model represents an LP matrix with 1,500

rows, 3,500 columns, 1,500 equations, 1,500constraints and 5,000 variables.


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Objective Function inan LP Model

A refinery LP model has a single objective function ofmaximizing the profit as below:

qTo maximize {S (Product value) - S (Raw Material cost) -S (Refinery Variable Costs)}

STC Inventory value

Carrying cost parameters


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Variables

The common variable includes:

Crude oil prices and minimum and maximum availability

Selling prices and minimum and maximum demands for

the different finished goodsAvailable process unit capacities

Available Inventory stocks and minimum and maximumstorage limits

Quality specifications


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Output

The LP matrix generator transforms the input data into agreat number of equations and variables.

The LP optimization algorithm solves the matrix and

calculates which combination of supply, processing,blending and selling activities gives the highest margin.

Then it combines this activities together with thefinancial results to give the profit maximization.


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Contd The output is generated in the form of different

types of text and Excel files. The reports containdetail output with respect to crudes quantities,

product numbers, capacity utilization, power,utilities and chemical consumption levels andprofit maximization.


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Benefits An LP solution helps in achieving key practical aspects:

It helps in the decision-making process

It provides the targets and operating strategies for the

actual operation It acts as a watch dog for the refinery operations

It clearly tells the inefficiency of operations in terms ofmoney


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Key to successful implementation

Regular Model updates and maintenance

Integrated application of different software

solutionsClear and well documented planning

procedures


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HANK YOU

06 naman mrpl

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