A System Dynamics Approach to Comparative Analysis of Biomass Supply Chain Coordination Strategies

Shohre Khoddami, Fereshteh Mafakheri and Yong Zeng
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Shohre Khoddami: Concordia Institute for Information Systems Engineering (CIISE), Concordia University, Montreal, QC H3G 1M8, Canada
Fereshteh Mafakheri: Concordia Institute for Information Systems Engineering (CIISE), Concordia University, Montreal, QC H3G 1M8, Canada
Yong Zeng: Concordia Institute for Information Systems Engineering (CIISE), Concordia University, Montreal, QC H3G 1M8, Canada

Energies, 2021, vol. 14, issue 10, 1-35

Abstract: Biomass is an abundant energy source, particularly in Canada, as an alternative or primary source for electricity generation. However, low economy of scale could cause a loss of efficiency for bioenergy adoption in small remote communities. In this sense, coordination among the players could promote the efficiency and profitability of bioenergy supply chains for these communities. There are different coordination strategies with varying impacts on supply chain players’ profit or cost. Therefore, analyzing and comparing them could provide insights on how to decide about the choice of coordination strategy. In doing so, this study considers the coordination strategies of quantity discounts and cost-sharing. The study adopts a system dynamics approach for simulating these coordination scenarios, obtaining their corresponding optimal supply chain decisions, followed by a comparative analysis. For a case study, the study considers multiple suppliers providing biomass for electricity generation in three communities in northern Quebec.

Keywords: bioenergy; biomass; supply chain coordination; communities; quantity discounts; cost sharing; system dynamics; simulation; optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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