Designing an integrated model for a multi-period, multi-echelon and multi-product petroleum supply chain

N. Moradi Nasab and M.R. Amin-Naseri

Energy, 2016, vol. 114, issue C, 708-733

Abstract: A petroleum supply chain is a large complex supply chain composed of several sub-problems. Numerous studies have focused on solving a portion of these problems, which led to a non-optimal solution. This study addresses a new multi-period multi-echelon and multi-transportation integrated petroleum supply chain model to obtain a global optimal solution. The main feature of this paper is to design an integrated supply chain model that considers both installation and capacity expansion of pipeline routes and facilities simultaneously, and optimizes location-allocation facilities and routes, capacity expansion, inventory, production, exportation and importation, as well as routing and transportation modes over a vast geographical area. To achieve this, a deterministic mixed-integer linear problem was developed and applied to a real world problem based on the information derived from Iran's petroleum chain. Numerous scenarios and sensitivity analyses have been presented for different cases to deepen more in the model. They showed that the optimal solution is less sensitive to variations of the cost parameters, but changes in the amount of demands and injected crude oil change the objective value remarkably. In general, the analysis showed that the developed model has the ability to present the best strategy in complex market situations.

Keywords: Integrated supply chain management; Capacity expansion; Location allocation; Transportation mode (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544216310647
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:114:y:2016:i:c:p:708-733

DOI: 10.1016/j.energy.2016.07.140

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().