Integrated multi-period planning of refinery operations, sales and supply

This report discusses multi-period planning in the context of proactive refinery supply chain planning, where the organization tries to take advantages from market opportunities, and the conclusion is that an integrated planning model has some advantages over a hierarchical planning model. In order to perform analysis using integrated planning a similar planning framework as in Kanyalkar and Adil (2005) is applied on a number of stylized cases. An optimization model of a refinery is formulated and effects from inventories, tanker sizes, flexibility, limited market access, and lack of feedstock are analyzed. The analysis illustrates that these affect optimal sales, purchases, refinery process settings and recipes, and in some cases to a large extent.