Design of regional production networks for second generation synthetic bio-fuel – A case study in Northern Germany

• Published in: European journal of operational research Vol. 218; no. 1; pp. 280 - 292
• Main Authors: Walther, Grit, Schatka, Anne, Spengler, Thomas S.
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.04.2012; Elsevier; Elsevier Sequoia S.A
• Subjects: (D) Supply chain management; Applied sciences; Biodiesel fuels; Case study; Decision theory. Utility theory; Exact sciences and technology; Facility location planning; Flows in networks. Combinatorial problems; Ground, air and sea transportation, marine construction; Integer programming; Interest groups; Inventory control, production control. Distribution; Network design; Operational research and scientific management; Operational research. Management science; Politics; Studies; Synthetic bio-fuel; Transportation planning, management and economics; Germany; Case study; Network design; (D) Supply chain management; Facility location planning; Synthetic bio-fuel; Production system; Script; Attitude; Decision making; Distributed system; Risk analysis; Sustainable development; Modeling; Location problem; Recommendation; Facility location; Uncertain system; Fuel; Plant layout; Production capacity; Medium term; Logistics
• ISSN: 0377-2217; 1872-6860
• DOI: 10.1016/j.ejor.2011.09.050

► The aim is to design production networks for second generation synthetic biodiesel. ► A multi-period MIP-model is used for location, capacity and technology planning. ► The approach is applied to the region of Niedersachsen, Germany. ► We give recommendations for political decision makers and for potential investors. In the medium-term, second generation synthetic bio-diesel will make an important contribution to sustainable mobility. However, attributed to political, technical, and market related uncertainties, it is still not clear which interest groups will invest in production capacities and which technologies will be used. Hence, a multi-period MIP-model is presented for integrated location, capacity and technology planning for the design of production networks for second generation synthetic bio-diesel. The approach is applied to the region of Niedersachsen, Germany. Principle network configurations are developed for this region considering different scenarios and different risk attitudes of interest groups. As results of the investigation, recommendations are drawn regarding advantageous plant concepts, as well as strategies for the capacity installation. Finally, recommendations for political decision makers as well as for potential investors are deduced.