An integrated model of supply network and production planning for multiple fuel products of multi-site refineries

An integrated model of supply network and production planning is proposed for the collaboration among refineries manufacturing multiple fuel products at different locations. The simulation and optimization based on the model indicate the following. The distribution costs can be reduced by relocating distribution centers as well as by reconfiguring their linkages to various markets. Moreover, the multiple fuel products manufactured need to be segregated during storage and transportation to be able to satisfy the demands of the various markets. The production planning, therefore, should be an integral part of the supply-network planning, and vice versa. Specifically, the proposed integrated model is for the nationwide supply of multiple fuel products manufactured by the individual refineries. The efficacy and usefulness of the integrated model is illustrated with an example involving three refineries and four varieties of fuel products.