Abstract

One of the primary challenges in the petrochemical supply chain is to secure high profits while considering environmental factors. This study employs Discrete Event Simulation using ARENA software to address profit maximization in the multi-echelon petrochemical supply chain by smartly controlling the inventory to minimize flaring and shortage events. The simulation has been developed based on a real case located in Saudi Arabia. The primary objective is to reconfigure the existing capacity constraints and operational strategies to achieve higher profitability and operational efficiency. Comparative results indicate a substantial enhancement in profitability with the implementation of our approach. The presented model demonstrates a significant increase in the profit by 2.99% and saves 0.428% emissions compared to the current system. This substantial enhancement underlines the effectiveness of the proposed optimization strategy within the simulation framework. The implications of this study are significant for the petrochemical industry, suggesting that considerable cost savings and efficiency gains are achievable with strategic modifications to supply chain management.