A multi-stage stochastic program for the sustainable design of biofuel supply chain networks under biomass supply uncertainty and disruption risk: A real-life case study. (October 2018)

• Record Type: Journal Article
• Authors: Fattahi, Mohammad; Govindan, Kannan
• Is Part Of: Transportation research. Volume 118(2018)
• Page Start: 534
• Page End: 567
• Publication Date: 2018-10
• Subjects: Biofuel supply chain -- Sustainable development -- Multi-stage stochastic programming -- Disruption risk -- Scenario tree construction -- Rolling horizon simulation; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2018.08.008
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: Focused on design and planning of a biofuel supply chain (SC) network. Proposed a cost-efficient multi-stage stochastic program model. Rolling horizon procedure is presented to evaluate the proposed model. Abstract: We focus on design and planning of a biofuel supply chain (SC) network from biomass to demand centers where biomass supply is stochastic and seasonal, and facilities' capacity varies randomly because of possible disruptions. We propose a cost-efficient multi-stage stochastic program in which the greenhouse gas emissions are mitigated and the social impact of the SC is considered. A rolling horizon procedure is presented to implement and evaluate the stochastic model solution. Computational results on a real-life case study demonstrate the proposed optimization tools' applicability as well as the effect of disruption risk and sustainability dimensions on biofuel SC planning.