4.7 Article

Optimization-based integrated decision model for smart resource management in the petrochemical industry

期刊

出版社

ELSEVIER SCIENCE INC
DOI: 10.1016/j.jiec.2022.05.051

关键词

Smart factory; Artificial neural network; Modeling and optimization; Price prediction; Decision making

资金

  1. Korea Institute of Energy Technology Evaluation and Planning (KETEP) - Korea government (MOTIE) [20214000000500]
  2. National Research Foundation of Korea (NRF) - Korea government (MSIT) [NRF-2022R1A2C1012612]

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This study proposes a new decision-supporting platform for the overall supply chain management of petrochemical industries to maximize business profits. The platform integrates various decision and featuring models to address critical challenges both vertically and horizontally. Implementing paper trade optimization, optimal operating conditions combined with price forecasting, and overall supply chain optimization can significantly improve business profit.
In this study, a new decision-supporting platform for the overall supply chain management of the petrochemical industries was proposed to maximize business profits. The proposed system integrates various decision-supporting models that address the critical challenges, both vertically and horizontally. Specifically, horizontal integration includes various decision-based problems along with the productive flow on the value chain from raw material purchasing and manufacturing to the final product sales, while vertical integration involves critical decisions at different levels, including the enterprise supply chain, the plant scheduling/planning, and the process operation. The optimization-based decision platform effectively supports the business's supply chain management, plant planning, and process operation strategy. The platform integrates different decision and featuring models, including a price prediction and a paper trading model for reducing the financial risks, a mathematical model of naphtha thermal cracker for identifying the optimal operating, and an optimization model for maximizing business profits. As a result, business profit was improved by 5.30% with only paper trade optimization, 6.67% with optimal operating conditions combined with price forecasting, and 11.98% with overall supply chain optimization. Thereby, the proposed platform assists decision-makers in determining the timing and quantity of raw material purchases and final product sales, as well as the operation strategies for process facilities, utilities, and inventory management. This study could be used to aid in the establishment of annual planning and scheduling as an auxiliary indicator for business operations. (c) 2022 The Korean Society of Industrial and Engineering Chemistry. Published by Elsevier B.V. All rights reserved.

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