Biofuel Supply Chain Network Design and Operations

The rapidly growing biofuel industry poses considerable challenges to its supply chain network design and operations. In this chapter, we introduce key characteristics of the biofuel supply chain that comprises of feedstock production, biomass logistics, biofuel production and distribution. We then discuss the recent literature on biofuel supply chain models. Using an illustrative biofuel supply chain model to facilitate the understanding of the core trade-offs in this context, we discuss various issues including logistics network optimization, transportation and inventory management, uncertainty management, land use competition, governmental policies, and the resulting environmental and social impacts.