Robust optimization on sustainable biodiesel supply chain produced from waste cooking oil under price uncertainty

• Published in: Waste management (Elmsford) Vol. 60; pp. 329 - 339
• Main Authors: Zhang, Yong, Jiang, Yunjian
• Format: Journal Article
• Language: English
• Published: United States Elsevier Ltd 01.02.2017
• Subjects: Biofuels - analysis; China; Cities; Commerce; Cooking; Mixed integer linear programming; Plant Oils - analysis; Robust optimization; Supply chain; Sustainable; Uncertainty; Waste cooking oil; Waste Management; Waste Products - analysis; Supply chain; Waste cooking oil; Robust optimization; Mixed integer linear programming; Sustainable
• ISSN: 0956-053X; 1879-2456
• DOI: 10.1016/j.wasman.2016.11.004

•Robust mixed integer linear programming model is proposed under price uncertainty.•Robust optimization has influence on supply chain decisions.•Environmental objective has a positive impact on bio-refinery.•Social objective helps to collect more kitchen waste. Waste cooking oil (WCO)-for-biodiesel conversion is regarded as the “waste-to-wealthy” industry. This paper addresses the design of a WCO-for-biodiesel supply chain at both strategic and tactical levels. The supply chain of this problem is studied, which is based on a typical mode of the waste collection (from restaurants’ kitchen) and conversion in the cities. The supply chain comprises three stakeholders: WCO supplier, integrated bio-refinery and demand zone. Three key problems should be addressed for the optimal design of the supply chain: (1) the number, sizes and locations of bio-refinery; (2) the sites and amount of WCO collected; (3) the transportation plans of WCO and biodiesel. A robust mixed integer linear model with muti-objective (economic, environmental and social objectives) is proposed for these problems. Finally, a large-scale practical case study is adopted based on Suzhou, a city in the east of China, to verify the proposed models.