Optimal Strategic Planning of Integrated Petroleum and Petrochemical Supply Chain

In this work we develop a novel multi-objective multi-period MINLP model for optimal strategic planning of entire petroleum and petrochemical supply chain (PPSC) to support decision making for petroleum and petrochemical industries. Nonlinear behaviour of the oil reservoir is considered for accurate prediction of crude production. More important, environmental impact based on Eco-indicator 99 is introduced as an objective function in addition to economic performance. The multi-objective model is converted to a single-objective by employing the weighting-sum method, which is solved to epsilon- global optimality using the proposed two-step procedure. An industrial-scale example is solved to show the capability of the proposed model and solution approach. The results clearly demonstrate the effect of considering environmental impact on the operation of PPSC.