Measuring Iranian Petroleum Downstream Supply Chain Management Performance; : A Combination of Analytical Hierarchy Process and Balance Score Card

Abstract: Petroleum downstream is a strategic and important industry for any nation. It supplies most of transport and travel needs and provides petrochemical business raw material, which is one of the infrastructure industries. Considering the importance of petroleum downstream and due to a very volatile crude and product market, one of the industry’s main targets is to meet customers’ requirements with administrating downstream supply chain efficiently. Supply chain management (SCM) is a strategic tool to enhance an organization’s productivity, profitability and certifying the success of business. Performance of SCM can indicate how successfully the supply chain is able to deal with its aim, which is increasing profit by increasing value to the customer. For evaluating the performance of SCM, a measurement system is required to determine its progress toward the main goal. In this thesis, the main concern is to propose a performance measurement method which is applicable for petroleum downstream SCM. For this purpose literature review is used to develop a model in Iran petroleum downstream. As a result of the research a numerical performance measurement model is suggested for Iranian downstream petroleum industry which is a combination of Analytical Hierarchy Process (AHP) and Balance Score card (BSC). One of the main features of this model is that it is applicable for industry level and can be used for benchmarking one SCM against another. Key words: Supply chain management, Performance measurement, Petroleum downstream supply chain, Balance score card, Analytical hierarchy process.