APPLICATION OF DISCRETE EVENT SIMULATION FOR VALIDATING A STORAGE INFRASTRUCTURE

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1 APPLICATION OF DISCRETE EVENT SIMULATION FOR VALIDATING A STORAGE INFRASTRUCTURE CASE STUDY: SIMULATION OF A FACILITY TO SUPPLY AN AIRPORT StocExpo 2015

2 CLH is renown for its efficient and effective transportation and logistic services 80 years of history State-of-the-art Efficiency Quality CLH is one of the top 5 companies in Europe & America operating storage and transportation of oil products for the past 80 years. CLH is one the top 5 companies with a state-ofthe-art integrated system of terminals and pipelines in the USA & Euro-zone markets CLH has one of the largest and most efficient integrated oil product transport and storage networks in the world IEA (International Energy Agency) Standing Group Review, March 2011 EFQM awards CLH with the golden seal 500+ (European Foundation for Quality Management) 2

3 CLH s logistics system guarantees product supply in the Spanish peninsula and the Balearic Islands Atlantic Ocean A Coruña-Puerto R. A Coruña A Coruña-Bens Santiago Asturias León Gijón R. Somorrostro Santander Rivabellosa Santurce Bilbao Pamplona France Vigo Salamanca Palencia Villaverde Santovenia Barajas Torrejón Burgos La Rioja San Adrián Loeches Zaragoza Lleida Pallejá Mafume El Prat Ballobar t Barcelona La Muela Tarragona R. Tarragona Ariza R. Castellón Girona Son Bonet Mahón 4,019 km of pipelines 39 storage facilities 28 airport facilities 8 refineries connected to CLH's network 14 port facilities Sevilla Huelva R. Huelva Rota Mérida Coria Badajoz Jerez Cuatro Vientos Poblete Almodóvar Adamuz Malaga R. San Roque San Roque Algeciras Arahal Córdoba Mora R. Puertollano Motril Alcázar de San Juan San Javier Almería Manises Altet Albuixech Alicante Cartagena R. Cartagena Ibiza Porto Pi Palma Mediterranean Sea Son Banya 3

4 4 CLH has advanced management and control systems Customers CLH Customers Satellite Orders Product output Online information Control center Logistics network Applications that allow clients to: Load orders automatically Real time monitoring Available immediately anywhere in CLH network One dispatching for the entire country Simplification of movements Multiproduct pipelines Integration of storage, transportation and management systems Lower cost for operators Efficient loading process Quality, quantity and fiscal guarantees

5 Through optimization, CLH is able to offer its clients instantaneous product credit for flexible withdrawals How CLH's logistics system works: instant product credit Integrated system Integrated management of primary logistics services eliminates clients need to own logistics assets A Coruña- Puerto Zaragoza Instant product credit Geographic coverage Instant credit allows clients to access their products from any point on CLH's logistics network immediately after it has been delivered CLH offers its services throughout all of the Peninsula and the Balearic Islands Rota Product enters on day X Product is withdrawn on day X 5

6 CLH's logistics system integrates storage and transportation Advantages of CLH's integrated logistics system Lower costs Sustainability Easy scheduling Lowers investment necessities and optimizes transportation costs, decreasing operator's logistics costs Enables optimizing product movements Reducing emissions Reducing risk of leaks Simplifies product transportation scheduling for operators Stock optimization Reduces the stocks needed for transportation and ensures supply by minimizing the transportation time 6

7 Event simulation methodology Discrete-event simulation can combine historical data, data that represents interesting situations, and algorithms that define how the entities should work. Infrastructure or process under study Modifications proposals (if applies) Real World Simulation Conclusions Simulation Model Simulation Scenarios Analyze output data Random failures There are many examples where simulation applies, like sizing new infrastructures (number of tanks and volume, number of loading bays, etc.), determining products configuration in loading arms, comparing logistics solutions, evaluating and optimizing operations, etc. 7

8 Case study: Simulation of a facility to supply an airport Pipeline 1 Pipeline 2 Pipeline 3 Port 1 st storage area 2 nd storage area hydrant 8

9 Objectives of the simulation Confirm that the capacity is suitable to supply the airport, there are not bottlenecks, and the defined process is correct. Determine how failures affects. Determine how the process is affected by having a tank less. Determine the maximum demand than can be satisfied with this infrastructure. 9

10 STORED VOLUMES OPERATIONAL TIMES Building the model IMPUTS ELEMENTS RULES OUTPUTS FLOW RATE PIPES TANK TANK TANK TANK OPERATIONAL RULES INTERNAL MOVES TANK TANK TANK TANK PIPES AIRPORT DEMAND 10

11 Operacional rules Additive failure ANY SOURCE NO Certified product in first storage area YES Enough vacuum in second storage area NO YES ADITTIVE Move certified product to the second storage area YES Returning wong additive product NO AIRPORT NO Enough vacuum in first storage area YES Return product 11

12 Volume Testing out the capacity and quality concerns and adding additive failures , > m3 0, , , Time with a quality concern m3 Time with product with wrong additive quantity m3 0, Simulation time Suma de VOLUMEN ALMACENADO TOR Suma de TANQUES SOBRESTADIS Suma de VOLUMEN DISPONIBLE BARAJAS Suma de TANQUES CONTAMINADOS 8 12

13 What if the facility has one tank less ANY SOURCE , ADITTIVE M3 0,8 0,6 Time Time with with product product contaminated M m3 m3 Time Time with with product product with with wrong wrong additive additive quantity quantity m3 0,4 0, Suma Stored Stored de volume VOLUMEN volume in the ALMACENADO in Facility the Facility TOR Tank Suma Tank with de TANQUES with wrong wrong additive SOBRESTADIS additive quantity quantity Stored Stored Suma certified de certified VOLUMEN volume volume DISPONIBLE in the in Facility the Facility BARAJAS Tank Tank Suma contamination de TANQUES CONTAMINADOS AIRPORT 0 13

14 Increase the demand up to the maximum HOURLY DEMAND PROFILE

15 Simulated daily demand Average stored certified volume in the facility Increase the demand up to the maximum 2500 HOURLY INCREASED DEMAND m Simulation 4 time Suma de DEMANDA Suma de HORAS ROTURA Promedio de VOLUMEN DISPONIBLE BARAJAS 0 15

16 Conclusions In complex cases, simulation can solve the usual problems of sizing infrastructures. Applies to optimising operations that are very hard to evaluate because of the number of connected variables that have to be considered at the same time. Once the model is created it is easy to generate all the what-if scenarios needed, covering all the interesting scenarios. It is a powerful tool in decision making. 16

17 Thank you

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