Application of Goal Programming to Swap Analysis in Oil Industry

Abstract Swap practices in the oil industry have been mostly ad-hoc, with no theoretical foundation, the main objective being to swap products on an as-needed basis. This research, using goal programming (GP), proposes a multiple objective methodology to solve the swap problem of the firms in the oil industry. The proposed model offers attractive alternatives and various practical GP-based scenarios, allowing the managers in the oil industry to consider viable options which take into consideration preferences, tradeoffs and outcomes when planning their logistics strategies and supply chain management activities. The swap strategies offered in this research have been developed with close cooperation of the officials from the oil industry—thus have practical implications and can be readily implemented.