Mathematical Model for Planning and Optimisation of Petroleum Supply Chain Under Uncertainty
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Abstract
This work focuses on the planning and petroleum
industry logistic and supply chains from raw materials to
production distribution by developing a two-stage stochastic
linear programming with recourse techniques. The paper
investigates and creates a set of mathematical models which
considers different parameters such as production of crude
oil, transportation plan, production levels, operating
conditions, production distribution plans, prices of raw
materials and products under significant source of
uncertainty which represent the market demand of refinery
products. Expected Value of Perfect Information (EVPI) is
computed a maximum amount a decision maker that should
pay for additional information gives a perfect signal as to
the state of nature.
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