Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/1115
Title: Multi-objective Sustainable Supply Chain Optimization of the Petroleum Industry in Kuwait
Authors: Aya M. H. Elghool 
Supervisor: Prof. Haitham M. S. Lababidi
Degree Awarded: M.Sc Degree in: Chemical Engineering
Keywords: Supply chain, Sustainability, Optimization, Oil production and processing, Refining, Petrochemical Industry
Issue Date: 2019
Publisher:  Kuwait university - college of graduate studies
Abstract: Most of the supply chain models, especially for an industry like petroleum, are based mainly on economic considerations, where cost and profit are the direct focus of the study. Recently, environmental and social considerations have been drawing the attention of researchers and top management of different organizations around the world, who are striving to maintain sustainability in their operations. The main objective of this work is to develop a multi-objective model that considers all three aspects of sustainability (Economics, Environment, and Social) and implement it for a multi-echelon supply chain network of a petroleum organization. The proposed network consists of all activities related to upstream crude oil production, processing, and distribution, as well as downstream refining, petrochemical and chemical industries. The economic cost function accounts for production, logistics, lost demand, and backlog penalties costs. The environmental performance of the supply chain is included using IRCHS (Indiana Relative Chemicals Hazard Score) index, while the social aspect is reflected in two indicators related to risk and career development, which are represented as total number of accidents and annual training hours, respectively. GAMS software was used to optimize the supply chain models by concurrently minimizing total cost along with emissions and accidents rate, while maximizing the number of training hours to employees. The model was tested with single and multi-objectives under variation of weight sets. Resilience of the proposed optimization model was tested through a sensitivity analysis by subjecting the model to uncertainties in prices of commodities. Results showed that the crude oil sector is the most stable sector compared to all the sectors of the supply chain. For the single objective cost functions, the ultimate possible gained benefits are; 15% in environmental performance, up to 60% reduction in accidents and 11% improvements in career development. The multi-objective results proved that the integration of sustainability within the supply chain is a feasible solution to improve the environmental, safety, and social performances of the organization, without significantly compromising the net profit, provided that proper weights are assigned to the sustainability components. A slight decrease in profit (0.09%) was found to be the compromised economic gain when all objectives are included compared to when economics were the main concern. In return, 1.3% and 2.2% improvements can be gained in environmental and social performances of the organization, respectively. At the other end, the results revealed an ambitious solution for which the environmental, accident's risks and career development indicators can be improved by 4.7%, 28% and 44%, respectively, if the organization is ready to reinvest 2.8% of the net profit.
URI: http://hdl.handle.net/123456789/1115
Appears in Programs:0640 Chemical Engineering

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