Crude Oil Distribution Optimization: A Multi-Objective Mathematical Model Aligned with Sustainable Development Goals

Abstract

Crude oil, serving as the world's primary energy source, plays a pivotal role in shaping a nation's economic standing and global reputation. The intricate orchestration of its supply chain stands as a paramount global concern. In this research, we present a multi-objective, multi-period mathematical programming model tailored for the design of an upstream oil supply chain network. Our model is intricately aligned with the principles of sustainable development, simultaneously optimizing economic, environmental, and social objectives. Our approach to sustainability encompasses economic and environmental dimensions. We minimize total costs while addressing the pressing issue of greenhouse gas emissions. Furthermore, we uphold the social aspect of sustainability by maximizing job creation opportunities. Our comprehensive model encompasses various components, including crude oil production and gas extraction centers, oil storage facilities, processing centers, and oil demand terminals. To tackle the multi-objective nature of the model, we employ a solution approach rooted in fuzzy concepts. Numerical results substantiate the model's robustness and underscore the paramount importance of integrating sustainable development goals into the design of crude oil supply chains. Moreover, this model offers a strategic framework for upstream oil industry companies seeking to develop sustainable crude oil supply chain management strategies.