Publication detail

A fair profit allocation model for the distribution plan optimisation of refined products supply chains

Wang, B., Klemeš, J.J., Zheng, T., Liang, Y.

Original Title

A fair profit allocation model for the distribution plan optimisation of refined products supply chains

Type

book chapter

Language

English

Original Abstract

Refined products supply chain optimisation is a crucial issue in the oil industry. The task is to transport refined products from refineries to storage depots and retail markets through multiple transport modes. The optimisation of the refined products supply chain has been mostly based on maximising the total profit. However, each company, along with the supply chain, pursuits their own maximum profit. The solution obtained by the total chain method may not satisfy all the participants in the refined products supply chain. Bargains have existed between these companies, and steps are required to adjust the transport plan, which may affect the optimality of the plan. Also, the bargain abilities of these companies are different. A mixed-integer nonlinear programming (MINLP) model considering both cooperative game theory and transfer prices to simulate the behaviours of stakeholders is proposed to solve this problem of the optimal refined products distribution planning. Material balance, production rate, transport modes and capacities are developed as constraints. Nash bargaining solutions for the multi-player bargaining game are obtained via maximising a tailored objective function. In this way, a refined products distribution plan with more fair profit allocation can be obtained, and the bargaining ability of each participant can be considered. The model is applied to a refined products supply chain in China as a case study to show its validity and applicability. This method can also be used in the optimal planning of other refined products supply chain and help to enhance their performance.

Keywords

Refined Products Supply Chain (RPSC); fair profit allocation; mixed-integer nonlinear programming (MINLP); Nash bargaining

Authors

Wang, B., Klemeš, J.J., Zheng, T., Liang, Y.

Released

25. 6. 2021

Publisher

Elsevier Ltd.

ISBN

9780323885065

Book

31st European Symposium on Computer Aided Process Engineering

ISBN

1570-7946

Periodical

Computer Aided Chemical Engineering

Number

50

State

Kingdom of the Netherlands

Pages from

1847

Pages to

1852

Pages count

6

URL

https://www.sciencedirect.com/science/article/abs/pii/B9780323885065502862?via%3Dihub

BibTex

@inbook{BUT172209,
  author="Bohong {Wang} and Jiří {Klemeš}",
  title="A fair profit allocation model for the distribution plan optimisation of refined products supply chains",
  booktitle="31st European Symposium on Computer Aided Process Engineering",
  year="2021",
  publisher="Elsevier Ltd.",
  pages="1847--1852",
  doi="10.1016/B978-0-323-88506-5.50286-2",
  isbn="9780323885065",
  url="https://www.sciencedirect.com/science/article/abs/pii/B9780323885065502862?via%3Dihub"
}