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A multi-stage stochastic program for the sustainable design of biofuel supply chain networks under biomass supply uncertainty and disruption risk: A real-life case study

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  • Fattahi, Mohammad
  • Govindan, Kannan

Abstract

We focus on design and planning of a biofuel supply chain (SC) network from biomass to demand centers where biomass supply is stochastic and seasonal, and facilities’ capacity varies randomly because of possible disruptions. We propose a cost-efficient multi-stage stochastic program in which the greenhouse gas emissions are mitigated and the social impact of the SC is considered. A rolling horizon procedure is presented to implement and evaluate the stochastic model solution. Computational results on a real-life case study demonstrate the proposed optimization tools’ applicability as well as the effect of disruption risk and sustainability dimensions on biofuel SC planning.

Suggested Citation

  • Fattahi, Mohammad & Govindan, Kannan, 2018. "A multi-stage stochastic program for the sustainable design of biofuel supply chain networks under biomass supply uncertainty and disruption risk: A real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 534-567.
    • Handle: RePEc:eee:transe:v:118:y:2018:i:c:p:534-567
    DOI: 10.1016/j.tre.2018.08.008
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