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Is Bio-Supply Chain a Feasibility in India? An Uncertainty-Based Study

Kapil Gumte and Kishalay Mitra ()
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Kapil Gumte: Indian Institute of Technology Hyderabad
Kishalay Mitra: Indian Institute of Technology Hyderabad

Chapter Chapter 17 in Applications of Operational Research in Business and Industries, 2023, pp 253-271 from Springer

Abstract: Abstract Aligning with environment-friendly move by Indian government to blend gasoline and diesel with 20% bio-products, a countrywide multi-product supply chain network has been designed. The sustainable, techno-economic, and environment-friendly model has been formulated considering conflicting objectives involving net present value and greenhouse gas emissions while determining the network design and flow decisions using a multi-period mixed integer linear programming approach. To face the special challenge of continuous feed supply across the year in India, model allows handling multiple feed and their respective technologies considering spatial–temporal distribution of biomass. Imports are blended with the indigenous products to maintain product quantity and production shortfall. The model generates revenue by selling the bio-products and greenhouse gas carbon credits. The uncertainties involved in product demand, externally imported price and biomass raw material feed, are handled via robust optimization methodology considering realizations of possible uncertain scenarios. Based on real demand data of products during 2018–2026, the deterministic and stochastic nature of results have been studied thoroughly. The sensitivity analysis implicates atleast 45% of biomass raw material supply, to run the bioenergy sector successfully under worst possible scenario.

Keywords: Bio-supply chain network design; Bio-fuel blending; Robust optimization; Mixed integer linear programming; Uncertainty handling (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-981-19-8012-1_17

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DOI: 10.1007/978-981-19-8012-1_17

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