A multi-stage stochastic program for the sustainable design of biofuel supply chain networks under biomass supply uncertainty and disruption risk: A real-life case study

• Published in: Transportation research. Part E, Logistics and transportation review Vol. 118; pp. 534 - 567
• Main Authors: Fattahi, Mohammad, Govindan, Kannan
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.10.2018
• Subjects: Biofuel supply chain; Disruption risk; Multi-stage stochastic programming; Rolling horizon simulation; Scenario tree construction; Sustainable development; Multi-stage stochastic programming; Disruption risk; Rolling horizon simulation; Scenario tree construction; Sustainable development; Biofuel supply chain
• ISSN: 1366-5545; 1878-5794
• DOI: 10.1016/j.tre.2018.08.008

•Focused on design and planning of a biofuel supply chain (SC) network.•Proposed a cost-efficient multi-stage stochastic program model.•Rolling horizon procedure is presented to evaluate the proposed model. We focus on design and planning of a biofuel supply chain (SC) network from biomass to demand centers where biomass supply is stochastic and seasonal, and facilities’ capacity varies randomly because of possible disruptions. We propose a cost-efficient multi-stage stochastic program in which the greenhouse gas emissions are mitigated and the social impact of the SC is considered. A rolling horizon procedure is presented to implement and evaluate the stochastic model solution. Computational results on a real-life case study demonstrate the proposed optimization tools’ applicability as well as the effect of disruption risk and sustainability dimensions on biofuel SC planning.