Robust optimization for petroleum supply chain collaborative design and planning

Leao J. Fernandes, Susana Relvas, Douglas Alem, Ana P. Barbosa-Póvoa

Research output: Chapter in Book/Report/Conference proceedingChapter


Network design and planning is instrumental to improve the Petroleum Supply Chains (PSC) competitiveness, affected nowadays by the economic crisis, alternative energy competition and price related uncertainties. This poses the need of developing stochastic models for simultaneous profit maximization and risk minimization, however these stance difficult to solve due to problem complexity and representation issues. We propose a tractable robust optimization (RO) downstream PSC planning model to determine the depot and the transportation capacities to install, operate and close between the refineries and retail filling stations; the fair price costs and tariffs per product, company, location and route; and the multi-stage product transfer and inventory volumes per period while considering uncertainties in crude oil costs and refined product prices. Results are presented for the real case Portuguese PSC, identifying insights and opportunities for further research.

Original languageEnglish
Title of host publication26 European Symposium on Computer Aided Process Engineering, 2016
PublisherElsevier B.V.
Number of pages6
ISBN (Print)9780444634283
Publication statusE-pub ahead of print - 25 Jun 2016

Publication series

NameComputer Aided Chemical Engineering
ISSN (Print)15707946


  • collaborative planning
  • downstream petroleum supply chain
  • network design
  • robust optimization
  • uncertainty management

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