Evaluating the Energy Supply Chain in the Petrochemical Industry with the Cost Malmquist Productivity Index Approach and Fuzzy VIKOR Con-sidering the Importance Coefficient of Input Variables

Karampour, Ali; Tayaran, Shahrzad; Fallahshams, Mirfeiz

doi:10.22050/pbr.2024.473303.1346

Evaluating the Energy Supply Chain in the Petrochemical Industry with the Cost Malmquist Productivity Index Approach and Fuzzy VIKOR Con-sidering the Importance Coefficient of Input Variables

Document Type : Original Article

Authors

Ali Karampour ¹

Shahrzad Tayaran ²

Mirfeiz Fallahshams ³

¹ PhD student, Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

² Assistant Professor, Department of Management, Central Tehran Branch, Islamic Azad Univer-sity, Tehran, Iran

³ Associate Professor, Department of Finance, Central Tehran Branch, Islamic Azad University, Tehran, Iran

https://doi.org/10.22050/pbr.2024.473303.1346

Abstract

This study was conducted with the aim of evaluating the energy supply chain in the petrochemi-cal industry with the approach of Malmquist cost efficiency index and fuzzy VIKOR, taking into account the importance coefficient of input variables. After reviewing the literature, first the inputs and outputs of the energy supply chain were identified. Then, the influential variables in the petrochemical industry in the energy supply chain were identified and prioritized with the fuzzy VIKOR approach. Then the weight of the input variables was calculated with the geomet-ric mean and the input variables were entered into the mathematical model based on their weight. Based on input type, a mathematical model was written to estimate input costs to ensure output and supply chain efficiency in two consecutive years. Then the Malmquist cost index was estimated based on the model outputs. The petrochemical company with the highest Malmquist total cost index and the lowest output cost was selected as the optimal solution of the model. The value of the objective function indicates the input costs. Our inputs include two variables, the number of employees, the value of materials used in fuel reproduction. Petro-chemicals 9, 7, 12, 10, 6, 5, 3, 4, 13, 11, 2, 8, 1 and 14 respectively have the lowest input costs, but it is necessarily due to efficiency that petrochemicals and the efficiency of petrochemicals is checked. The cost return is calculated from the relevant formula in the years 2021 and 2022.

Highlights

· Determining the important inputs and outputs of the energy supply chain in the petrochemical industry using the fuzzy VIKOR method;

· Choosing the “production of goods and services” variable as the output and the variables of machines used in production (physical capital), workers, and materials (such as fuel) consumed in production as the inputs;

· Combining the fuzzy VIKOR method (a qualitative method) and an energy efficiency assessment model (a mathematical model) to provide a better evaluation with fewer calculations;

· Providing a mathematical efficiency assessment model according to the type of input variables to reduce input costs;

· Entering desirable and undesirable output variables, including waste of petrochemical industries, in the mathematical efficiency assessment model;

· Determining the inefficient petrochemicals and helping them with their reduced efficiency by reviewing the programs of efficient petrochemicals;

Determining the variations in total efficiency, CTC, and OEC during two consecutive years and using CMPI to compare the efficiency of the petrochemical for these two years

Keywords

Energy supply chain

Fuzzy VIKOR

Supply Chain Input and Output

Energy Supply Chain Effi-ciency

Cost Malmquist Index

Subjects

Oil and Gas Economics and Management

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