A two-stage stochastic model for co-firing biomass supply chain networks

A sustainable alternative to fossil fuels is biomass. The design of cost-efficient biomass networks necessary compete with nonrenewable resources. creation integrated supply chain (BSC) network models and solution procedures can contribute the achievement this goal. In particular, emerging bioenergy industry must take advantage economies scale in transportation minimize final product’s cost. Hub-and-spoke have been proposed as a modeling approach large BSCs. majority these are deterministic do not consider inherent variability feedstock, such physical chemical properties that affect transportation, effects future climate on supply, overall cost, production operations. Levels ash moisture directly related quality which negatively affects biofuels, increasing handling costs well burden BSC’s efficiency. Varying weather yield, creates fluctuation incoming into network, creating complex Newsvendors Problem. paper, stochastic hub-and-spoke model an efficient logistical by finding optimal distribution while reducing computational using metaheuristics, Simulated Annealing, when solving NP-hard instances. procedure was compared recent benchmark models, i.e. Bender’s Decomposition, yielding difference less than 7.71% average reduction time 91.4%. Case studies several scenarios based varying conditions were created realistic data from northeast region U.S.