Analysis of Oil and Gas Supply Chain Using Continuous-Time Discrete-Event Simulation

Document Type

Conference Proceeding

Publication Date


Subject: LCSH

Business logistics, Petroleum, Natural gas


Operations Research, Systems Engineering and Industrial Engineering


Although every supply chain is unique and has challenges in achieving operational excellence, only a few are as complex as oil and gas supply chains. To stay competitive in the market, it is important for these supply chains to enhance their operational efficiency, responsiveness, resilience, and reliability. Different analysis techniques are used for this purpose, including analytical and simulation models. However, due to the high complexity and operational variability of oil and gas supply chains, it is difficult to develop accurate analytical models to study the behavior of the supply chain. In this case, simulation is the most appropriate method to use because of its ability to provide a detailed and dynamic view of the supply chain. In this study, a Continuous-Time Discrete-Event (CTDE) simulation model is used to study the behavior of oil and gas supply chains in order to improve their performance. A case study for an oil and gas supply chain in one of the world's largest oil producing countries is considered. Different scenarios are analyzed and a statistical comparison is performed to validate the CTDE model. Results obtained from the simulation model are used to provide recommendations to improve the performance of the supply chain. The proposed improvements increase the average number of gasoline and LPG served customers by 23% and 78%, respectively.


(C) 2016 IISE. All rights reserved.

Publisher Citation

Kbah, Z., Erdil, N.O., & Aqlan, F. (2016, May), Analysis of Oil and Gas Supply Chain Using Continuous-Time Discrete-Event Simulation. Paper presented at Industrial and Systems Engineering Research Conference (ISERC), May 21-24, 2016, Anaheim, CA.