Abstract
Over the years, oil-related energy sources have played an irreplaceable role in both developed and developing countries. Therefore, the efficiency of petroleum supply chains is a key factor that significantly affects the economy. This research aimed to optimize the configuration of the uncertainty multimodal petroleum supply chain in terms of economy, energy and environment (3E assessment). This study proposes a novel integration methodology between a heuristic algorithm and exact solution optimization. In the first stage, this study determines the facilities’ potential geographical coordinates using heuristic algorithm. Then, the fuzzy min-max goal programming model (FMMGPM) was developed to find the multi-objective solutions. In particular, this model allows analysis of supply chain uncertainty through simultaneous factors such as demand, resource, cost and price. These uncertainty factors are expressed as triangular fuzzy parameters that can be analyzed in terms of both probability and magnitude. Moreover, the model is applied to the entire petroleum supply chain in Vietnam, including downstream and upstream activities. In addition, another novelty is that for the first time, pipeline systems in logistics activities are considered in Vietnam’s petroleum supply chain optimization study. The results also show the short-term and long-term benefits of developing a pipeline system for oil transportation in Vietnam’s petroleum supply chain. To evaluate the effects of uncertainty on design decisions, this study also performed a sensitivity analysis with scenarios constructed based on different magnitudes and probabilities of uncertainty.
Highlights
A detailed petroleum supply chain configuration is proposed for managers in Vietnam based on the results of the optimization model
The model proposed in this study is applied to find optimal design solutions for both the petroleum supply chain in general and the pipeline system, in Vietnam
Min-max goal programming and fuzzy sets are approaches to augmenting the mixed-integer programming model to deal with this multiple objective and were determined using a heuristic algorithm
Summary
These uncertainty factors are expressed as triangular fuzzy parameters that can be analyzed in terms of both probability and magnitude This model balances the three objectives of maximizing profits, maximizing energy security and minimizing transport emissions by applying the min-max variant of the goal programming approach. The above integrated methodology is applied in practice for the petroleum supply chain in Vietnam In this managerial contribution, a detailed petroleum supply chain configuration is proposed for managers in Vietnam based on the results of the optimization model. A detailed petroleum supply chain configuration is proposed for managers in Vietnam based on the results of the optimization model This includes a proposal for the process of developing a pipeline system for both crude oil exports and gasoline imports.
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