Collaborative Design and Tactical Planning of Downstream Petroleum Supply Chains

Petroleum Supply Chains (PSCs) are complex systems of petroleum entities, products, and distribution logistics, where efficient network design and planning are critical. In this paper, a dynamic mixed-integer linear program (MILP) is presented for its collaborative design and tactical planning with multistage inventories, extending the work in Fernandes et al. [Chem. Eng. Res. Des. 2013, 91, 1557-1587]. The model determines the optimal design with multientity supply, installations, and resource capacity sharing with prices incorporating economies of scale, while fulfilling customer demand for a multientity, multiechelon, multitransportation, and multiproduct downstream PSC. Collaborative planning permits multiechelon profit maximization, where the entities incorporate profits from partly owned refineries, storage depots, and transportation and retail infrastructures. The dynamic MILP is tested for the real-case Portuguese PSC network, considering production at local refineries and supply from a regional hub, obtaining current, grassroots, and retrofit designs for the single-entity and multientity networks.