A robust crude oil supply chain design under uncertain demand and market price: A case study

Abstract

In today’s global economy, the oil industry plays a vital role and has an effect on most of countries within leading business environments, particularly in oil producing countries. To deal with the complexity of the crude oil supply network, a mathematical programming model is developed to formulate a crude oil supply chain. A robust optimization model is developed to maximize the profitability of the entire chain and take uncertainties of price and demand into account. The results show that according to the real case study data the robust optimization technique will increase the profitability of the crude oil supply chain.