Study On Production And Inventory Optimization System Of Refinery Supply Chain

Supply chain management intends to enhance the competitiveness of thesupply chain through the cooperation and coordination of the interrelatedenterprises within the chain. It pays attention to the total benefit andlong-term benefit of the whole supply chain. Therefore, the introduction of theconcept of the supply chain management to the production managementprocess of petroleum refining enterprises is beneficial to enhance theirmanagement level and improve their economic efficiency and competitiveness.Management and optimization of production process is one of the mainsources of the economic benefit of the refineries. In this dissertation, theproduction and inventory optimization system of the refinery supply chainwas studied and the following progresses have been achieved.1. The concept of supply chain management was introduced into theproduction planning optimization of refineries. This provides a usefulexploration for the research of supply chain management of refineries.2. Generally, the inventory management was not included in theproduction planning optimization of the refinery. Thus, the enterprise alwaysholds large quantities of finished product storage, and the efficiency andcompetitiveness is seriously decreased. Therefore, remarkable economicbenefit can be obtained through simultaneously optimizing the productionplan and inventory management of refineries.3. By analyzing and comparing the characteristics of discrete industryand refinery industry, a single-period production and inventory managementmodel for refinery supply chain was proposed. And a case study was carriedout. The results show that the model is feasible and effective.4. It has been discovered that in the general production planningoptimization model, as the yield of side draws are considered as importantdecision variables, so their constraint equations are insufficient. Thus, someof the optimized side draws may not satisfy the quality requirements. Herenew variables, the total cutting out ratios (total cutting out ratio from theside-draw plate to the top plate), were proposed to substitute the originaldecision variables (yield of side draws) to improve the production planningoptimization model.5. A multi-period production and inventory management optimizationmodel, which is based on the prediction of product demands, was establishedfor the refinery supply chain management. A case study with industry datafrom a refinery shows that the smoothing producing, fulfilling customerrequest and decreasing the entire inventory cost was achieved.6. A mixed algorithm based on the genetic algorithm and linearprogramming was proposed to solve the multi-period production andinventory management optimization problem for refinery supply chainmanagement. Using the mixed algorithm, the multi-period model wassimplified from non-linear programming to linear programming, and thenumber of variables and constraint equations was decreased by 41% and 54%,respectively.