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Agri-biomass supply chain optimization in north China: Model development and application

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  • Wu, Juanjuan
  • Zhang, Jian
  • Yi, Weiming
  • Cai, Hongzhen
  • Li, Yang
  • Su, Zhanpeng

Abstract

The development of an agri-biomass supply chain optimization model and decision support tools have a critical role to play in the success of large-scale agri-biomass utilization. A multidisciplinary approach that incorporates operational research, geographic information systems, mathematical modeling, technical economic analysis and sensitivity analysis was developed to optimize agri-biomass supply chain management and feedstock supply. It applies the model to a case study of Shandong Province's Dezhou City, and this enables it to illustrate the factors that affect supply costs. The optimal agri-biomass supply costs were 180.98 CNY/t. Of the costs, transportation related cost and purchase cost were found to be the most significant components of agri-biomass supply costs, and labor cost was the largest component of operating costs. The results showed the agri-biomass supply chain is profitable compared with the actual situation in Shandong Province. Sensitivity analysis results demonstrated that the optimal agri-biomass supply chain infrastructure was sensitive to changes in agri-biomass unit collection cost, agri-biomass unit transportation cost, and agri-biomass demand. The paper concluded that it is worthwhile to exploit economies of scale to reduce agri-biomass supply costs.

Suggested Citation

  • Wu, Juanjuan & Zhang, Jian & Yi, Weiming & Cai, Hongzhen & Li, Yang & Su, Zhanpeng, 2022. "Agri-biomass supply chain optimization in north China: Model development and application," Energy, Elsevier, vol. 239(PD).
    • Handle: RePEc:eee:energy:v:239:y:2022:i:pd:s0360544221026232
    DOI: 10.1016/j.energy.2021.122374
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