Greening the Petrochemical Supply Chain: An Integrated Model to Production Planning, Inventory Management, and Emissions Reduction

The petrochemical supply chain (PCSC) needs production planning, inventory control, and emissions reduction to run sustainably. This approach reduces waste, costs, and environmental impact, making the supply chain resilient to demand and raw material changes. This paper proposes an optimization model for multi-echelon PCSC that integrates production planning, inventory control, and reverse logistics. The model aims to maximize the SC's overall profit while minimizing its environmental footprint, and it considers both feedforward and reverse logistics. This integrated approach allows for optimized production planning, inventory control at each echelon, and efficient logistics network management. The practicality of the proposed model has been demonstrated by its implementation in a C4 SC from Saudi Arabia. In a case study, the C4 supply chain system is optimized under specific policies, achieving a profit of $44.63M with a flaring cost of $643K daily.