Optimizing Production Planning and Supplier Selection in Petrochemical Supply Chains
Subject Areas : Operation ResearchReza Babazadeh 1 , Mohammad Khalili 2 , fatemeh dadmand 3
1 - Faculty of Engineering, Urmia University, Urmia
2 - Faculty of Engineering, Urmia University, Urmia, West Azerbaijan Province, Ira
3 - Department of Management, Payame Noor University, Tehran, Iran
Keywords: production planning, supplier selection, Petrochemical industry,
Abstract :
In this research, the intricate world of the petrochemical supply chain was delved into, with a focus on the critical problem of production planning and supplier selection. The aim was to identify effective factors that contribute to the continuous supply chain process of petrochemical production. The study was conducted in two phases, first, the Analytic Hierarchy Process (AHP) method was employed to identify the best suppliers. In the second phase, an innovative model was developed to optimize production planning. The primary objective was to minimize the total cost associated with ordering, holding, and production. To ensure the practicality and relevance of the model, several constraints were incorporated. The results obtained from the AHP method revealed that Shiraz Petrochemical emerged as the optimal supplier for urea, Khorasan Petrochemical for ammonia, and Ilam Petrochemical for sulfur. Additionally, the optimization model provided valuable insights into the optimal production quantities, raw material procurement volumes, and raw material inventory levels for each period.
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