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Supply chain model to assess the feasibility of incorporating a terminal between forests and biorefineries

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  • Gautam, Shuva
  • LeBel, Luc
  • Carle, Marc-André

Abstract

This study examines the advantages of incorporating a terminal for forest biomass in an advanced biofuels supply chain network. Forest biomass as a feedstock is non-uniform, voluminous and high in moisture content (MC). This leads to inefficiencies during transportation and energy conversion process, posing a challenge for supply chains to remain profitable. The problem is exacerbated by seasonality in both supply and demand. A terminal in the biomass feedstock supply chain could help overcome these challenges, but adds a significant cost. A novel multi-period mixed-integer programming (MIP) model capable of taking into consideration biomass quality, seasonality, and weather related supply restrictions was developed. The model was applied in a case study to assess the benefits of incorporating a terminal in the supply chain. It was demonstrated that a terminal allowed delivery of feedstock 4–11% lower in MC, while reducing procurement costs by 11–32%. The benefits reported are sensitive to transportation and operating costs. The proposed model will serve as a valuable tool for practitioners to design supply chains, and assess the feasibility of using forest biomass for sustainable biofuels production.

Suggested Citation

  • Gautam, Shuva & LeBel, Luc & Carle, Marc-André, 2017. "Supply chain model to assess the feasibility of incorporating a terminal between forests and biorefineries," Applied Energy, Elsevier, vol. 198(C), pages 377-384.
    • Handle: RePEc:eee:appene:v:198:y:2017:i:c:p:377-384
    DOI: 10.1016/j.apenergy.2017.01.021
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    5. Baburam Rijal & Luc LeBel & Shuva H. Gautam & Pierre Cantegril, 2020. "A Sequential Optimization Approach in Tactical Planning for Value Creation in the Forest Products Industry," Sustainability, MDPI, vol. 12(12), pages 1-23, June.
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    7. Akhtari, Shaghaygh & Sowlati, Taraneh & Griess, Verena C., 2018. "Integrated strategic and tactical optimization of forest-based biomass supply chains to consider medium-term supply and demand variations," Applied Energy, Elsevier, vol. 213(C), pages 626-638.
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    10. Malladi, Krishna Teja & Quirion-Blais, Olivier & Sowlati, Taraneh, 2018. "Development of a decision support tool for optimizing the short-term logistics of forest-based biomass," Applied Energy, Elsevier, vol. 216(C), pages 662-677.
    11. Sfeir, Tamires de Almeida & Pécora, José Eduardo & Ruiz, Angel & LeBel, Luc, 2021. "Integrating natural wood drying and seasonal trucks’ workload restrictions into forestry transportation planning," Omega, Elsevier, vol. 98(C).
    12. Malladi, Krishna Teja & Sowlati, Taraneh, 2018. "Biomass logistics: A review of important features, optimization modeling and the new trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 587-599.
    13. Razm, Sobhan & Brahimi, Nadjib & Hammami, Ramzi & Dolgui, Alexandre, 2023. "A production planning model for biorefineries with biomass perishability and biofuel transformation," International Journal of Production Economics, Elsevier, vol. 258(C).
    14. Mobtaker, A. & Ouhimmou, M. & Audy, J.-F. & Rönnqvist, M., 2021. "A review on decision support systems for tactical logistics planning in the context of forest bioeconomy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    15. Martín, Mariano & Grossmann, Ignacio E., 2018. "Optimal integration of renewable based processes for fuels and power production: Spain case study," Applied Energy, Elsevier, vol. 213(C), pages 595-610.
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    18. Prinz, Robert & Väätäinen, Kari & Laitila, Juha & Sikanen, Lauri & Asikainen, Antti, 2019. "Analysis of energy efficiency of forest chip supply systems using discrete-event simulation," Applied Energy, Elsevier, vol. 235(C), pages 1369-1380.

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