A simulation-based robust biofuel facility location model for an integrated bio-energy logistics network
Abstract: The purpose of this
paper is to propose a simulation-based robust biofuel facility location model
for solving an integrated bio-energy logistics network (IBLN) problem, where biomass
yield is often uncertain or difficult to determine.
Design/methodology/approach: The IBLN considered in this paper consists
of four different facilities: farm or harvest site (HS), collection facility
(CF), biorefinery (BR), and blending station (BS). Authors propose a mixed
integer quadratic modeling approach to simultaneously determine the optimal CF
and BR locations and corresponding biomass and bio-energy transportation plans.
The authors randomly generate biomass yield of each HS and find the optimal
locations of CFs and BRs for each generated biomass yield, and select the
robust locations of CFs and BRs to show the effects of biomass yield
uncertainty on the optimality of CF and BR locations. Case studies using data
from the State of South Carolina in the United State are conducted to
demonstrate the developed model’s capability to better handle the impact of
uncertainty of biomass yield.
Findings: The results illustrate that the robust location model for BRs
and CFs works very well in terms of the total logistics costs. The proposed
model would help decision-makers find the most robust locations for
biorefineries and collection facilities, which usually require huge
investments, and would assist potential investors in identifying the least cost
or important facilities to invest in the biomass and bio-energy industry.
Originality/value: An optimal biofuel facility location model is
formulated for the case of deterministic biomass yield. To improve the
robustness of the model for cases with probabilistic biomass yield, the model
is evaluated by a simulation approach using case studies. The proposed model
and robustness concept would be a very useful tool that helps potential biofuel
investors minimize their investment risk.
Keywords: Bio-energy Logistics
Network, Robust biorefinery Location, Biomass Yield, Simulation Approach
Author: Jae-Dong Hong, Keli
Feng, Yuanchang Xie
Journal Code: jptindustrigg140089
