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

Mohammad Fattahi and Kannan Govindan

Transportation Research Part E: Logistics and Transportation Review, 2018, vol. 118, issue C, 534-567

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.

Keywords: Biofuel supply chain; Sustainable development; Multi-stage stochastic programming; Disruption risk; Scenario tree construction; Rolling horizon simulation (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (36)

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DOI: 10.1016/j.tre.2018.08.008

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