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Multi-Objective Optimization of Production, Inventory, and Pricing Decisions in the Oil and Gas Industry under Uncertainty
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Marzieh Mozafari *1   |
| 1- , m_mozafari@iau.ac.ir |
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Abstract: (209 Views) |
In recent years, firms operating in the oil and gas industry have faced increasing economic volatility and demand uncertainty, which has posed significant challenges to the coordination of production decisions and revenue management strategies. This study proposes a fuzzy multi-objective optimization model for the simultaneous decision-making of production, inventory, and pricing of oil and gas products. The model is developed for large-scale production complexes in the oil and gas sector, with operational structures comparable to refineries and gas processing complexes in Iran, and is formulated within a multi-period planning horizon. The objectives of the model include profit maximization and enhancement of the technical readiness level of production units, based on indicators such as technological level, skilled technical workforce, and equipment lifetime. To account for demand uncertainty, triangular fuzzy demand is employed, and the model is formulated as a dynamic, multi-product system. The proposed model is solved for a realistically simulated large-scale gas complex using tailored evolutionary algorithm based on the Non-Dominated Sorting Genetic Algorithm (NSGA-II) and the obtained solutions are thoroughly analyzed and discussed. Computational results demonstrate that the proposed framework effectively establishes a balanced trade-off between economic and technical objectives, leading to a significant increase in total profit while simultaneously improving the technical readiness of production units. Sensitivity analysis further reveals the decisive role of several key parameters in shaping profit behavior and product pricing dynamics.
JEL Classification: C61, C63, L71.
Keywords: Production and inventory decisions, Oil & gas products pricing, Fuzzy multi-objective programming, NSGA-II algorithm.
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| Keywords: Production, Inventory and Pricing Decisions, Fuzzy Multi-Objective Model, Oil and gas industry, Profitability, Technical Readiness
JEL Classification: C61, C63, L71. |
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Full-Text [PDF 2982 kb]
(21 Downloads)
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Type of Study: Thesis(PhD.) |
Subject:
مدل هاي نفت و گاز
Received: 2025/11/2 | Accepted: 2025/10/2 | Published: 2025/10/2 | ePublished: 2025/10/2
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