Supply chain optimization of petroleum organization under uncertainty in market demands and prices

Al-Othman, Wafa B.E.; Lababidi, Haitham M.S.; Alatiqi, I.M.; Al-Shayji, Khawla

doi:10.1016/j.ejor.2006.06.081

Cited by 129 publications

(53 citation statements)

References 28 publications

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“…This issue has been considered in the oil planning literature, such as the stochastic programming approaches by Al-Othman et al [1] and Dempster et al [8]. Research has also been done on integrating planning, as we referred to in the introduction (Pinto and Moro [22]; Neiro and Pinto [19]; Guyonnet et al [13]) but, as far as we know, none of these and related references in the oil industry have studied the integration of operation and sales decisions under an internal pricing mechanism as described in our paper.…”

Section: Discussionmentioning

confidence: 99%

Speciality oils supply chain optimization: From a decoupled to an integrated planning approach

Guajardo

Kylinger

Rönnqvist

2013

European Journal of Operational Research

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We study a problem of tactical planning in a divergent supply chain. It involves decisions regarding production, inventory, internal transportation, sales and distribution to customers. The problem is motivated by the context of a company in the speciality oils industry. The overall objective at tactical level is to maximize contribution and, in order to achieve this, the planning has been divided into two separate problems. The first problem concerns sales where the final sales and distribution planning is decentralized to individual sellers. The second problem concerns production, transportation and inventory planning through refineries, hubs and depots and is managed centrally with the aim of minimizing costs. Due to this decoupling, the solution of the two problems needs to be coordinated in order to achieve the overall objective. In the company, this is pursued through an internal price system aiming at giving the sellers the incentives needed to align their decisions with the overall objective. We propose and discuss linear programming models for the decoupled and integrated planning problems. We present numerical examples to illustrate potential effects of integration and coordination and discuss the advantages and disadvantages of the integrated over the decoupled approach. While the total contribution is higher in the integrated approach, it has also been found that the sellers' contribution can be considerably lower. Therefore, we also suggest contribution sharing rules to Email addresses: mario.guajardo@nhh.no (Mario Guajardo), martin.kylinger@liu.se (Martin Kylinger), mikael.ronnqvist@nhh.no (Mikael Rönnqvist) Preprint submitted to NHH Discussion Series March 20, 2012 achieve that both the company and sellers get a better outcome under the integrated planning.

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Section: Discussionmentioning

confidence: 99%

Speciality oils supply chain optimization: From a decoupled to an integrated planning approach

Guajardo

Kylinger

Rönnqvist

2013

European Journal of Operational Research

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“…On trouve ainsi des modèles analytiques (optimisation robuste, programmation stochastique, théorie des jeux, programmation linéaire et paramétrique) (Al-Othman et al, 2008 ;Bihlmaier, 2009). Les incertitudes sont représentées par des distributions de probabilité tirées de l'historique des données.…”

Section: Introductionunclassified

Planification de chaîne logistique sous incertitude : maintien de solution par satisfaction de contraintes dynamiques

Trojet¹,

H'Mida²,

López³

et al. 2016

Journal Européen des Systèmes Automatisés

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“…The stochastic programming model is often used for dealing with uncertain parameters that may affect a scenario of a system or entity (Coello et al, 2007;Birge and Louveaux, 1997;Al-Othman et al, 2008). Considering a decision y, which is influenced by scenario s of element r, the result of decision y is defined by z(y, r).…”

Section: The Stochastic Modelmentioning

confidence: 99%

A cost-effective decision-making algorithm for an RFID-enabled HMSC network design

Mohammed

Wang

2017

IMDS

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Purpose The purpose of this paper is to investigate the economic feasibility of a three-echelon Halal Meat Supply Chain (HMSC) network that is monitored by a proposed radio frequency identification (RFID)-based management system for enhancing the integrity traceability of Halal meat products and to maximize the average integrity number of Halal meat products, maximize the return of investment (ROI), maximize the capacity utilization of facilities and minimize the total investment cost of the proposed RFID-monitoring system. The location-allocation problem of facilities needs also to be resolved in conjunction with the quantity flow of Halal meat products from farms to abattoirs and from abattoirs to retailers. Design/methodology/approach First, a deterministic multi-objective mixed integer linear programming model was developed and used for optimizing the proposed RFID-based HMSC network toward a comprised solution based on four conflicting objectives as described above. Second, a stochastic programming model was developed and used for examining the impact on the number of Halal meat products by altering the value of integrity percentage. The ε-constraint approach and the modified weighted sum approach were proposed for acquisition of non-inferior solutions obtained from the developed models. Furthermore, the Max-Min approach was used for selecting the best solution among them. Findings The research outcome shows the applicability of the developed models using a real case study. Based on the computational results, a reasonable ROI can be achievable by implementing RFID into the HMSC network. Research limitations/implications This work addresses interesting avenues for further research on exploring the HMSC network design under different types of uncertainties and transportation means. Also, environmentalism has been becoming increasingly a significant global problem in the present century. Thus, the presented model could be extended to include the environmental aspects as an objective function. Practical implications The model can be utilized for food supply chain designers. Also, it could be applied to realistic problems in the field of supply chain management. Originality/value Although there were a few studies focusing on the configuration of a number of HMSC networks, this area is overlooked by researchers. The study shows the developed methodology can be a useful tool for designers to determine a cost-effective design of food supply chain networks.

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Supply chain optimization of petroleum organization under uncertainty in market demands and prices

Cited by 129 publications

References 28 publications

Speciality oils supply chain optimization: From a decoupled to an integrated planning approach

Speciality oils supply chain optimization: From a decoupled to an integrated planning approach

Planification de chaîne logistique sous incertitude : maintien de solution par satisfaction de contraintes dynamiques

A cost-effective decision-making algorithm for an RFID-enabled HMSC network design

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