The purpose of this paper was to analyze the effect of crude oil price as a determinant on performance of supply chain systems in the petroleum industries in Kenya. Supply chain is a dynamic process and involves the constant flow of information, materials, and funds across multiple functional areas both within and between chain members. Members in the chain need to cooperate with their business partners in order to meet customer’s needs and to maximize their profit by reducing cost of crude oil. However, it is a very difficult task in managing the multiple collaborations in a supply chain because there are so many firms involved in the supply chain operations with its own resources processes also requires real-time operation and decision making across different tasks, functional areas, and organizational boundaries in order to deal with problems and uncertainties. The strategic move of focus for mass customization, quick response, and high-quality service cannot be achieved without more complex cooperation and dynamic structure of supply chains.
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