Modeling downstream petroleum supply chain: The importance of multi-mode transportation to strategic planning

Yasaman Kazemi and Joseph Szmerekovsky

Transportation Research Part E: Logistics and Transportation Review, 2015, vol. 83, issue C, 111-125

Abstract: This paper proposes a deterministic mixed integer linear programming (MILP) model for downstream petroleum supply chain (PSC) network to determine the optimal distribution center (DC) locations, capacities, transportation modes, and transfer volumes. The model minimizes multi-echelon multi-product cost along the refineries, distribution centers, transportation modes and demand nodes. The relationship between strategic planning and multimodal transportation is further elucidated. A case study was considered with real data from the U.S. petroleum industry and transportation networks within Geographic Information System (GIS). A scenario analysis is also conducted to demonstrate the impact of key parameters on PSC decisions and total cost.

Keywords: MILP model; Multimode transportation; Strategic planning; Petroleum distribution network design; Geographic information system; Logistics decisions (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (21)

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DOI: 10.1016/j.tre.2015.09.004

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