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Using Plant Simulation for supply chain simulation
Neste Oil Corporation is a refining and marketing company with a production focus on premium-quality lower-emission traffic fuels. The company is the world’s leading supplier of renewable diesel. Its refineries in Porvoo and Naantali in Finland have sufficient capacity to refine a total of approximately 260,000 barrels of crude oil per day. The company had net sales of € 15 billion in 2008 and employs approximately 5,200 people. Neste Oil is listed on the NASDAQ OMX Helsinki.
Neste Oil uses Plant Simulation software to conduct studies and projects that are primarily concerned with the simulation of product flows from the production facility via the storage terminals to the customer. The results generated by a simulation model help to identify possible optimizations and improvements. One of the advantages of simulation is the possibility of elaborating and comparing different scenarios in a short space of time. Because the different scenarios are examined with the aid of a basic model it is extremely important that this basic model is accurately validated.
Plant Simulation is a very effective way of presenting studies and projects. Processes can be visually depicted in a way that enables people who are not closely involved to easily follow what happens so they can then make the right decisions.
The first model was designed to provide a visual representation of the supply chain with the existing volumes, calculate the costs and evaluate the existing storage solution. The model was then expanded with the addition of an extra production facility. Creating and comparing different scenarios made it possible to identify the most advantageous storage locations, determine the required capacities and calculate the costs.