Abstract

Applying mathematical modeling to solve swap problems, specifically in the petroleum industry, have proven to help the decision makers to better determine what, where, and how much to swap in order to reduce supply chain (SC) costs and improve its surplus. However, for a better determination of the alternatives and a more profound evaluation of the tradeoffs among them, a comprehensive analysis of the results and a thorough investigation of their impact on the parties involved in swap are crucial. This research performs a detailed sensitivity analysis of the swap problem to examine the effect of different operational parameters on the cost savings realized along the supply chain of the organizations involved in swap. Findings of this study suggest that, if performed properly, swap can significantly reduce supply chain costs and may result in substantial savings, creating a win-win situation for all parties engaged in swap.

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