AN OPTIMIZATION BASED INTELLIGENT DECISION SUPPORT SYSTEM FOR LOGISTICS PLANNING (NETWORK MODELING)

This research focuses on a new and successful application of optimization based intelligent decision support system in the Petroleum Industry for addressing Production, Distribution and Inventory Planning problems. It involves the design, development and implementation of an integrated mathematical programming model and computer system to address the complex short-term planning and operational issues associated with the supply, distribution and marketing of refined petroleum products.; This system has evolved into an intelligent decision support system that uses the tools of Knowledge Engineering and Expert systems to build an effective, integrated system. This involves mathematical elements as well as the information resources necessary to support it. Several modeling features, hitherto untried in any major modeling effort, have been successfully implemented in a Network Optimization framework. Unique features include the modeling of time phasing to account for the time lag between product shipment and delivery, and product sourcing using spot purchases and sales, exchange contract agreements and trades.; The use of a fourth generation modeling language has been instrumental in capturing the intricacies of the network model and facilitates creating new model structures for various parametric changes. Concepts for Knowledge Based Systems and Artificial Intelligence applied in setting up "Exception Reports" through the use of production rules are another major characteristic of this application. The impact of this decision support system on integrated short-term planning and decision making and in stimulating changes in attitudes and environment of the users and management is extensive.