Optimizing the Raw Material Supply Chain of the Wood Biomass Power Generation Industry for Different Stakeholders’ Benefits: An Analysis of Inner Mongolia, China

Yang Bai, He Yang, Yu Zhao, Min Zhang, Jinyuan Qin and Feng Mi
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Yang Bai: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
He Yang: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
Yu Zhao: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
Min Zhang: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
Jinyuan Qin: Faculty of Business and Economics, University of Melbourne, Melbourne, VIC 3010, Australia
Feng Mi: School of Economics and Management, Beijing Forestry University, Beijing 100083, China

Sustainability, 2020, vol. 12, issue 5, 1-15

Abstract: A large number of sand shrubs have been planted in western China, especially in Inner Mongolia. Sand shrubs produce a large amount of stump residue, and wood biomass power generation enterprises that use stump residue as raw materials have emerged in Wushen Banner and other areas. In this paper, the Mixed Integer Linear Programming (MILP) model is used to optimize the raw material supply chain of forest biomass power generation enterprises. Optimizations with different objectives represent the choices of different stakeholders. The optimization results are listed as follows. (1) The self-issuance behavior of enterprises is inconsistent with the enterprise behavior required by social planners; (2) When social planners only pay attention to environmental benefits, the utilization rate of raw materials in towns located far from a power plant will be greatly reduced, which is not conducive for the reuse of stump residue; (3) When social planners consider economic, environmental, and social benefits simultaneously, the utilization rate of raw materials in each town will be significantly improved, resources will be effectively utilized, and certain economic benefits will be realized; (4) It is possible to reduce the difficulty of achieving optimization goals by promoting industrial development and encouraging technological progress.

Keywords: wood biomass; raw material supply chain; mixed integer nonlinear programming model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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