Peter M. Verderame

Operational planning framework for multisite production and distribution networks

The operational planning of a multisite production and distribution network, which entails making operational-level decisions for efficient production facility utilitization and customer-order fulfillment over a time horizon of several months, is of great importance but has received considerably less attention compared to operational planning approaches for a single production site. The inherent complexities of simultaneously optimizing the allocation of production tasks at each facility, as well as the interplay between several production and distribution centers make operational planning of a multisite production and distribution network challenging especially when addressing large-scale, industrial applications. The proposed multisite planning with production disaggregation model (Multisite-PPDM) has been formulated in order to address industrially relevant supply chains and determine both the production and shipment profiles for the supply chain of interest.

Evaluation of Synergy Effect in the Merger of Companies in a Petrochemical Complex

Abstract Mergers and Acquisitions (M&A) have been actively carried out in the petrochemical industry. However, the synergy created by the merger of petrochemical companies has seen relatively little study, despite being the primary goal of a merger. This study deals with the horizontal merger of petrochemical companies located within a single complex. Synergies considered in this paper stem from integration of the process network and the utility plant, fixed cost reduction, and contracts in purchasing and selling. A novel mathematical model that represents the operation of a process network and a utility plant and the decision for purchasing and selling contracts is formulated. Four contracts for purchasing and selling are considered. The proposed model is applied to three Korean Naphtha Cracking Center (NCC) companies located in the same industrial complex. The results show that synergy effects from integration of the process network and the utility system, fixed cost reduction, and increased market share together increase profit by fifty percent.

Integrated Operational Planning and Scheduling under Uncertainty

Abstract An integrated operational planning and medium-term scheduling framework which takes into account various forms of market and process uncertainty will be presented. The framework entails the integration of a novel and robust Planning with Production Disaggregation Model with the robust counterpart of an industrially validated mediumterm scheduling model through a forward rolling horizon scheme. The operational planning and scheduling under uncertainty framework has been applied to an industrial case study in order to demonstrate that it can address relevant planning and scheduling problems.