Revenue maximization and pricing: an ethanol supply chain and logistical strategy perspectives

Iddrisu Awudu (iddrisu.awudu@quinnipiac.edu), William Wilson, George Baah, Vinay Gonela and Mariama Yakubu
Additional contact information
Iddrisu Awudu: Quinnipiac University
William Wilson: North Dakota State University
George Baah: Quinnipiac University
Vinay Gonela: Texas A&M University, Central Texas
Mariama Yakubu: University of New Haven

Journal of Revenue and Pricing Management, 2024, vol. 23, issue 1, No 7, 62-75

Abstract: Abstract In this paper we develop a stochastic optimization model to evaluate tradeoffs and effects of strategic variables on storage and logistics costs in managing an ethanol supply chain. Specific objectives include: (1) to develop a model of the ethanol supply chain incorporating stochastic variables capturing uncertainties that ethanol merchandisers manage; (2) to evaluate effects of short- and long-term decisions such as feedstock purchase, when to ship, rail car strategies, and transit time and: (3) to analyze impacts of random variables and strategies on supply chain costs. The model maximizes profit from operation of the supply chain subject to decisions on corn feedstock procurement, ethanol production, ethanol shipments, corn and ethanol inventory levels, and rail car transit time and number of rail cars needed for the ethanol to be shipped. A representative case study in North Dakota ethanol firm is used for illustration.

Keywords: Ethanol; Logistics; Supply chain (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41272-023-00422-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorapm:v:23:y:2024:i:1:d:10.1057_s41272-023-00422-0

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41272

DOI: 10.1057/s41272-023-00422-0

Access Statistics for this article

Journal of Revenue and Pricing Management is currently edited by Ian Yeoman

More articles in Journal of Revenue and Pricing Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).