Refinery Shipment Planning: Monthly and Daily Execution

       Refineries execute shipment plans over different planning horizons depending on operational requirements. The most common approaches are monthly and daily planning, each providing a different balance between operational flexibility and execution control. Shipment plans may also be prepared for quarterly, annual, or custom planning periods. A long-term plan defines the required shipment volumes for an extended reporting period, while a short-term plan specifies the quantities that must be shipped on individual days. Different planning horizons support different shipment scheduling strategies. ShipmentNode supports both approaches and executes the selected planning strategy configured for the dynamic refinery digital twin model. Shipment planning is one of the key processes in refinery production planning because it defines future inventory requirements and production targets.

       A monthly shipment plan specifies only the total product volume that must be shipped during the reporting period. Shipment timing is determined by the selected ShipmentNode execution algorithm together with current process constraints. The exact shipment timing is determined during execution according to the selected ShipmentNode algorithm and current process constraints.

A daily shipment plan defines the shipment volume for each individual day. ShipmentNode reads the planned daily quantity from the database and executes it independently of previous or future days. Daily planning is used when shipment quantities must be controlled for each reporting day.

       ShipmentNode can execute shipment plans using different planning horizons, with daily and monthly planning being the most common in refinery operations. The required planning mode is selected during model configuration before the simulation starts. It remains unchanged throughout the simulation, reflecting how shipment planning is organized in real refineries.

       ShipmentNode supports two shipment execution algorithms for monthly shipment plans.
       Monthly fast opens the shipment valve fully and transfers product at the maximum rate permitted by the process. The actual shipment rate is determined by equipment capacity, tank farm availability, and other process constraints. The monthly target is reached as quickly as possible.
       Monthly evenly distributes the monthly shipment volume uniformly over the execution period. ShipmentNode calculates the required daily target, transfers product until that target is reached, then suspends shipments until the next day. A configurable reserve period can be defined to leave several days at the end of the month for recovering from operational delays.
Both algorithms execute the same monthly target but differ only in the shipment distribution strategy.

       Daily shipment plans require no internal distribution algorithm because the shipment quantity is already defined for each day. ShipmentNode loads the planned daily volume, opens the shipment valve, and continues transferring product until the target is reached or the reporting day ends.
Each day is treated as an independent execution period. Any remaining daily target is not automatically transferred to the following day unless a new shipment plan is generated by the planning system.

       Any element of the refinery supply chain can become the bottleneck. ShipmentNode executes the shipment plan but does not eliminate process constraints. A shipment can only be completed if the refinery is physically capable of producing, storing, and delivering the required product.
The primary limitation is the material balance. The refinery cannot ship more product than is available from feedstock, production, and existing inventories. Additional constraints may include limited feedstock quality, insufficient process unit capacity, inadequate tank farm inventory, storage or pumping limitations, and loading infrastructure constraints such as pipelines, loading racks, or railcar availability.

       Petroleum Refining Library provides a dedicated ShipmentNode component for refinery shipment planning and execution. ShipmentNode supports daily, monthly, quarterly, annual, and custom planning periods, multiple shipment execution algorithms, configurable working-hour restrictions, and optional plan overfulfillment for selected shipment streams.
The component automatically loads shipment plans from the database, executes them according to the configured strategy, records execution statistics, and provides the shipment demand required by tank farms to determine tank farm inventory targets. This enables engineers to validate shipment plans, identify operational bottlenecks, and verify that refinery production, storage, and logistics can satisfy future shipment requirements. Each ShipmentNode typically manages a single product stream and operates independently of other ShipmentNodes within the model.

       ShipmentNode supports multiple shipment planning horizons while providing a consistent mechanism for plan execution and performance measurement. Whether the refinery uses daily, monthly, quarterly, or annual plans, ShipmentNode converts production targets into executable shipment operations.
ShipmentNode bridges refinery production planning and physical shipment execution. Combined with dynamic simulation, it allows engineers to verify whether planned shipments can be achieved under real refinery operating constraints.

1. What planning horizons does ShipmentNode support?
ShipmentNode supports daily, monthly, quarterly, annual, and custom planning periods. Monthly and daily planning are the most commonly used in refinery operations.

2. What is the difference between monthly and daily shipment planning?
A monthly plan specifies only the total shipment volume for the reporting period, while a daily plan defines the shipment quantity for each individual day.

3. Can ShipmentNode distribute monthly shipments automatically?
Yes. Monthly plans can be executed using different algorithms, including maximum-rate shipment and uniform shipment distribution throughout the month.

4. Can ShipmentNode restrict shipments to working hours?
Yes. Shipments can be limited to predefined working hours configured in the model.

5. Can ShipmentNode overfulfill a shipment plan?
Yes. Optional plan overfulfillment can be enabled during model configuration for shipment streams where additional product transfer is acceptable.

6. Can ShipmentNode change the planning mode during a simulation?
No. The planning mode is selected during model configuration and remains fixed throughout the simulation.

7. Does ShipmentNode optimize refinery production?
No. ShipmentNode executes shipment plans and records their fulfillment. Production optimization is performed by planning or optimization systems, while the digital twin verifies whether the plan is operationally feasible.

8. How does ShipmentNode interact with tank farms?
Tank farms use ShipmentNode to determine the inventory required to satisfy future shipment demand, allowing the simulation to calculate the production needed to meet the plan.

9. Can multiple ShipmentNodes operate in the same model?
Yes. Each ShipmentNode operates independently and is typically assigned to a single product or shipment stream.

10. What industries can use ShipmentNode?
Although primarily designed for petroleum refining, ShipmentNode can be used in any process industry that requires execution and monitoring of planned material transfers.