Agri-biomass supply chain optimization in north China: Model development and application

Juanjuan Wu, Jian Zhang, Weiming Yi, Hongzhen Cai, Yang Li and Zhanpeng Su

Energy, 2022, vol. 239, issue PD

Abstract: The development of an agri-biomass supply chain optimization model and decision support tools have a critical role to play in the success of large-scale agri-biomass utilization. A multidisciplinary approach that incorporates operational research, geographic information systems, mathematical modeling, technical economic analysis and sensitivity analysis was developed to optimize agri-biomass supply chain management and feedstock supply. It applies the model to a case study of Shandong Province's Dezhou City, and this enables it to illustrate the factors that affect supply costs. The optimal agri-biomass supply costs were 180.98 CNY/t. Of the costs, transportation related cost and purchase cost were found to be the most significant components of agri-biomass supply costs, and labor cost was the largest component of operating costs. The results showed the agri-biomass supply chain is profitable compared with the actual situation in Shandong Province. Sensitivity analysis results demonstrated that the optimal agri-biomass supply chain infrastructure was sensitive to changes in agri-biomass unit collection cost, agri-biomass unit transportation cost, and agri-biomass demand. The paper concluded that it is worthwhile to exploit economies of scale to reduce agri-biomass supply costs.

Keywords: Agri-biomass; Supply chain optimization; Cost analysis; Sensitivity analysis; ArcGIS (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:239:y:2022:i:pd:s0360544221026232

DOI: 10.1016/j.energy.2021.122374

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