Model for the development of the Turkish Petrochemical Industry

An integrated model of the Turkish Petrochemical Industry is formulated. The petrochemical industry is regarded as a system of chemical reactions and interactions between chemicals are assumed to be linear. The model identifies process capacities such that the product demands are satisfied at a minimum total production cost to the industry. The linear programming problem formulated is solved by TEMPO under various conditions. Supply and price fluctuations of feedstock and the already existing process capacities are found to have significant influence on the total production cost, the choices of feedstocks by the industry, and the optimum structure of the industry.