Using genetic algorithm for fleet assignment of small-scale LNG supply chain

Abstract

Abstract This paper presents the development of a model of how to assign LNG carriers from a single LNG source to a number of scattered small-scale power plants in a milk-run operation strategy. Typically, researchers assume that ports/terminals to be visited are as given parameters. In this paper, the specifications of ports/terminals (infrastructures) are considered in the model as a consequence of the selected LNG carriers. The objective is to determine the optimum size and number of LNG carriers for a particular route by minimizing the unit logistics costs which include shipping costs and required infrastructures (ports and facilities) costs. The proposed approach of this paper is a metaheuristic by using genetic algorithm. The computational results shows that the optimal solution can be achieved in a relatively short period of time and the optimum cuve satisfies the law of deminishing returns. Finally, some encouraging computational results and suggestions for further study are presented.