Abstract: The application of Processes Industry Modeling System (PIMS) model in procurement of crude oil is introduced in this paper. The model is used to calculate prices of various crude oil at their breakeven points and to simulate the spreads between equilibrium price lines when comparing light crude from heavy crude or between low sulfur crude and high sulfur crude, which is very helpful to the setting up of purchasing plan. This model can be used to find the optimum crude oil allocation in terms of light and heavy during various distillation processing capacities. The optimized cases of spot crude oil procurement are also investigated and compared through PIMS model. Various real case simulations are presented briefly. The results show that PIMS model has played a sound role in optimizing procurement process of crude oil in SINOPEC Qingdao Refining & Chemical Company.

Key words: PIMS, crude oil procurement, production planning