Application of the Generalized Reduced Gradient Method to Minimize Fuel Consumption in Ship Allocation: A Case Study at PT. Wilmara

Abstract

Fuel efficiency is a persistent challenge in the maritime industry, particularly for companies managing the transportation of bulk commodities such as crude palm oil. This study investigates vessel allocation at PT. Wilmara can be optimized to reduce overall fuel consumption while ensuring that operational requirements are fulfilled. The primary goal is to identify the most effective distribution of cargo among available ships so that all port demands are met without exceeding vessel capacities. The research formulates this problem as a nonlinear optimization model and applies the Generalized Reduced Gradient method, utilizing Excel Solver, to find the optimal solution. Operational data, including ship capacities, specific fuel oil consumption rates, sailing speeds, port demands, and voyage distances, are incorporated into the model. The optimization process produces a cargo allocation plan that minimizes total fuel usage and operational costs compared to non-optimized scenarios. The results demonstrate that the Generalized Reduced Gradient approach is effective in improving both fuel efficiency and cost-effectiveness in fleet management. These findings underscore the practical benefits of advanced optimization techniques for shipping operations, contributing to more sustainable and efficient maritime logistics practices.

Keywords: Fuel Consumption Optimization; Generalized Reduced Gradient; Ship Allocation; Maritime Logistics