A two-stage chance-constrained stochastic programming model for a bio-fuel supply chain network
Md Abdul Quddus,
Sudipta Chowdhury,
Mohammad Marufuzzaman,
Fei Yu and
Linkan Bian
International Journal of Production Economics, 2018, vol. 195, issue C, 27-44
Abstract:
This study presents a two-stage chance-constrained stochastic programming model that captures the uncertainties due to feedstock seasonality in a bio-fuel supply chain network. The chance-constraint ensures that, with a high probability, Municipal Solid Waste (MSW) will be utilized for bio-fuel production. To solve our proposed optimization model, we use a combined sample average approximation algorithm. We use the state of Mississippi as a testing ground to visualize and validate the modeling results. Our computational experiments reveal some insightful results about the impact of MSW utilization on a bio-fuel supply chain network performance.
Keywords: Bio-fuel supply chain network; Multi-modal facility; Chance-constrained optimization; Sample average approximation (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (25)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:195:y:2018:i:c:p:27-44
DOI: 10.1016/j.ijpe.2017.09.019
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