The design of a liquefied natural gas (LNG) distribution network of a company operating in Mexico

This paper presents a modification of the Multi Depot Multi Period Vehicle Routing Problem with heterogeneous fleet (MDMPVRPHF) to consider capital expenditures and operating expenses (MDMPVRPHFMR). The aim is to design a product distribution network and minimize the total delivery cost. The MDMPVRPHF only considers transportation costs with transportation restrictions. In this paper, the purpose is to solve a real-life freight distribution problem that considers capital expenditures and operations expenses. The MDMPVRPHFMR is formulated as a mixed integer programming model. The results of the application of both models to a real case of study demonstrate the advantages presented by the MDMPVRPHFMR over the MDMPVRPHF. Hence, management restrictions must be considered when designing a real-life freight distribution problem. The study case is to develop a liquefied natural gas distribution model based on a real company operating in Mexico.