This paper presents an Equality Relaxation variant to the Outer-Approximation algorithm for solving mixed-integer nonlinear programming (MINLP) problems that arise in structural optimization of process flowsheets. The proposed algorithm has the important capability of being able to explicitly handle nonlinear equations within MINLP formulations that have linear integer variables and linear/nonlinear continuous variables. It is shown that through the explicit treatment of nonlinear equations, the proposed algorithm avoids computational difficulties (e.g. singularities, destruction of sparsity) that are experienced with algebraic or numerical elimination schemes. Also, theoretical properties of the Equality-Relaxation algorithm are discussed, and its performance is demonstrated with a planning problem and a flowsheet synthesis problem. Finally, a simple procedure for structural sensitivity analysis is presented.
ExxonMobil annually transports significant volumes of vacuum gas oil (VGO) from supply points in Europe to refineries in the United States. Optimizing these transportation costs by using modern mathematical programming technology can provide significant cost savings. We developed a mixed-integer programming formulation for VGO routing and inventory management, and we integrated it into a decision support tool to enable experienced traders and schedulers to further improve the performance of ExxonMobil's downstream supply chain.
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