A number of major oil refineries and chemical manufacturers producing various chemical products in large quantities have forged an alliance or merged the operation to facilitate the acquisition of raw materials, the distribution of intermediates and the delivery of products. An integrated model for supply network and production planning is proposed for the collaboration among these complexes manufacturing multiple products at different locations. The products manufactured need to be segregated during storage and transportation to be able to satisfy the demands of the various markets. The production planning, therefore, should be an integral part of the supply-network planning, and vice versa. The efficacy and usefulness of the integrated model is amply illustrated with a realistic example.

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