Optimiging the Delivery Quantity of Crude Oil by Dynamic Programming

동적계획법에 의한 원유도입량의 최적화

The continuous increase of crude oil consumption has struck great impact into the world economy, When we consider disadvantageous articles in contract for oil import, it would be desirable to import in batch the total quantity of crude oil contracted, but which is not available under the present situation which has many constraints This paper treats of the ways to deliver the crude oil in a given period so as to maximize the profit derived from the sales of oil products, To do this we should consider the prices of crude oil and oil products, inventory cost, transportation cost, oil refinement cost, and fluctuations of these parameters in a given period. The case of Korea Oil Corporation is treated in this paper to generalize the problem of crude oil transportation from Middle East and formulated in a mathematical programming. This programming is transformed into Dynamic Programming through specifing states, stages, payoffs, and recursive function. To clarify these procedure and methods, the case of Korea Oil Corporation is dealt with again and demonstrated in detail.