Optimization of petrochemical supply chain

This project proposes a method of optimizing petrochemical logistics through modification of the interaction patterns between a petrochemical refinery and the Maritime transportation provider. Initial literature reviews have identified gaps in existing petrochemical supply chain research. There is limited research on optimizing the maritime transportation segment of the supply chain. There is even lesser literature on the overall optimization of the petrochemical supply chain with considerations to the interaction between refineries and transportation providers. The team seeks to fill this gap with this project. The Excel Evolutionary Solver is utilized to optimize 2 separate models (refinery storage model and the ship routing model) with the objective of increasing storage utilization at a petrochemical refinery and to reduce voyage costs for the maritime transportation provider. The results from the refinery storage model have proven that the chartering of smaller vessels to act as storage buffer allows the refinery to cope with sudden surges in petrochemical demand without the need to construct or to rent additional storage tanks. The ship routing model allows the maritime transportation provider to minimise voyage costs by engaging in milk runs on the return leg of the voyage. The process of formulating the models has given the team the conclusion that there is a pressing need to conduct a joint research between academics from the Mathematics and professionals form the Maritime industry. This collaboration will allow the research initiative to have more control on the programming models. There will always be a demand for optimizing the Petrochemical supply chain. Much of the research have to adopt a more practical and realistic approach which can encourage industry application. With proper interest form the industry, funding can be obtained for more detailed research.Bachelor of Science (Maritime Studies