Optimum Integrated Design of Crude Oil Supply Chain by a Unique Mixed Integer Nonlinear Programming Model

Abstract

In this paper, a mixed integer nonlinear programming model is proposed to concurrently design two segments (i.e., upstream and midstream) of crude1 oil supply chain. The network includes all entities and their connections from oil wells to product depots. Furthermore, a real world example is applied to show the improved model application. Furthermore, a sensitivity analysis in which ±20% deviations at a time were placed on two parameters is presented. Also, model performance is analyzed with GAMS 22.6. The proposed multiperiod and multiproduct model consists of several decisions (i.e., oil field development, transformation, transportation, and distribution). The main contributions of this work are inclusion of all entities related to upstream and midstream segments and both oil field development and transformation planning, simultaneously. Finally, it is shown that a decrease in production cost of refinery products will lead to more net profit given all refinery production capacity are used. Also, increas...