DefinePK

Abstract

This paper presents a generalized simulation model of the oil refining industry for analyzing the effect of variability and randomness of demand and supply on the industry’s performance. The use of a simulation and analytical model for planning near-term production growth will facilitate the calculation of key parameters and identification of the most appropriate means of using resources and increasing output. We have created a functional diagram of the production and sale of petroleum products as a system that reflects both production and information management functions. In order to describe and analyze the performance of the system, we created an econometric model with the recursive structure of relations. We have also developed an operational algorithm for simulating the production and sale of petroleum products.