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A mathematical tri-level programming model for designing an integrated dynamic petroleum product supply chain

Amin Ahwazian (Department of Industrial Engineering, Islamic Azad University, Najafabad Branch, Najafabad, Iran)
Atefeh Amindoust (Department of Industrial Engineering, Islamic Azad University, Najafabad Branch, Najafabad, Iran)
Reza Tavakkoli-Moghaddam (School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran)
Mehrdad Nikbakht (Department of Industrial Engineering, Islamic Azad University, Najafabad Branch, Najafabad, Iran)

Journal of Advances in Management Research

ISSN: 0972-7981

Article publication date: 11 April 2022

Issue publication date: 25 August 2022

573

Abstract

Purpose

The purpose of this paper is to design petroleum products’ supply chain management, which includes efficient integration of suppliers, manufacturers, storehouses and retailers.

Design/methodology/approach

This paper proposes that a three-level supply chain will be turned into a bi-level supply chain of petroleum products by simultaneous integration of the middle level with the upstream and downstream levels. Also, it is integrally optimized by considering the multiple managerial flows' mutual results at various supply chain levels. Also, it is integrally optimized by considering the multiple managerial flows' mutual results at various supply chain levels.

Findings

The concepts of the design, structure and outputs are led by the model's solution. The model also responds to the variations in the market via coordination in the related decisions to the distribution, production and inventory issues, and also coordinating between the demands and production.

Research limitations/implications

This paper has limited its analysis to definite values due to the over-expansion of calculations and analysis. Future works can study other aspects of the proposed model for a multi-level petroleum product supply chain in different states of certain parameters and time zones.

Practical implications

The designed model can directly and transparently help the oil managers and decision-makers lower the costs of manufacturing, distribution and sales with respect to the determined criteria.

Originality/value

This paper establishes that effectiveness of the dynamic petroleum materials supply chain design will increase by considering maintained and increased production costs and coordinate management flows at all levels by supply chain creation’s integration.

Keywords

Acknowledgements

Funding: Not applicable

Availability of data and material: All data generated or analyzed during this research are included in this published article.

Code availability: Not applicable

Ethics approval: The authors certify that they have no affiliation with or involvement with human participants or animals performed by any of the authors in any organization or entity with any financial or non-financial interest in the subject matter or materials discussed in this paper.

Consent to participate: Not applicable

Consent for publication: Not applicable

Conflict of interest statement: The authors declare that there is no potential conflict of interest regarding the publication of this paper.

Citation

Ahwazian, A., Amindoust, A., Tavakkoli-Moghaddam, R. and Nikbakht, M. (2022), "A mathematical tri-level programming model for designing an integrated dynamic petroleum product supply chain", Journal of Advances in Management Research, Vol. 19 No. 4, pp. 651-674. https://doi.org/10.1108/JAMR-08-2021-0285

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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