Evaluate The Impact Of Sustainability And Pipeline Quality On Global Crude Oil Supply Chain
Jain, Sunny Paraskumar
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United states is one of the largest crude oil producer in the world but the consumption rate is higher than production hence united states imports oil from varies part of world depend on different criteria. The objective of this dissertation is to evaluate the impact of pipeline quality and facility sustainability on crude oil supply chain cost for Russia and Colombia that gave idea about when and where we have to invest to satisfy United states oil requirement. In order to meet this objective, three specific criteria are investigated as follow:1. Evaluate the supply chain factors that determine pipeline quality of crude oil production2. Evaluate the supply chain factors that determine Sustainability of crude oil production3. Evaluate the economic impacts of quality and sustainability on operational strategies in supplier network.The efficiency Curve model is modified to compare Crude oil supply chain among Colombia and Russia based on oil transportation distances and associated cost, refinery costs, and the costs associated with refinery sustainability and pipeline quality shown in "Modeling the Supply Chain" (Author: Shapiro). However this model was originally used to determine the optimal locations of distribution centers based on transportation cost and the capacity of the distribution centers, this model was modified to allow the use of different costs associated with the quality condition of the pipeline and the sustainability costs of an environmentally friendly facility. This case used to optimize the total cost of oil supply chain for Russia and Colombia. We seek to extend our previous supply chain model, which represent the outbound oil supply chain for Indonesia. The outputs of this paper are efficiency curve that show how the costs of pipeline quality and facility sustainability affect the overall costs of the oil industry of Russia and Colombia.