A sustainable integrated crude oil supply chain network design with consideration of social performance and environmental laws in a case study

Abstract

The oil or petroleum industry is among the most significant world industries and plays a decisive role in economic and political interactions due to its strategic importance. This massive industry has significantly been influenced by instabilities, political unrests, and sudden price fluctuation in recent years. Additionally, the decision-making process in the oil SC has become a challenging issue because of the presence of considerable facilities in the oil fields, oil refining, and distribution of petroleum products. Hence, the integrated optimization of oil SC has been quite popular with researchers. On the other hand, since there are environmental requirements, people have their shares in the extension of this industry, and developmental planning should consider ecological and social issues. The effort has been made in this article to propose a mathematical programming model for the design of oil supply chain network to reduce their environmental effects and improve the social indices while saving costs. Then, the model was solved with actual data from a real case study of the Iran Oil Industry. Finally, some recommendations have been provided based on analyses of the numerical results.