IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v48y2014i4p555-574.html
   My bibliography  Save this article

Environmentally Friendly Supply Chain Planning and Design for Biodiesel Production via Wastewater Sludge

Author

Listed:
  • Mohammad Marufuzzaman

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, Mississippi 39762)

  • Sandra Duni Ekşioğlu

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, Mississippi 39762)

  • Rafael Hernandez

    (Department of Chemical Engineering, University of Louisiana, Lafayette, Louisiana 70504)

Abstract

This study presents mathematical models that capture the impact of different carbon-emission-related policies on the design of the biodiesel supply chain. These mathematical models identify locations and production capacities for biocrude production plants by exploring the trade-offs that exist between transportation costs, facility investments costs, and emissions. The mathematical models capture the dynamics of biomass supply and transportation costs during a predefined time horizon. We analyze the behavior of the chain under different regulatory policies such as carbon cap, carbon tax, carbon cap and trade, and carbon offset mechanisms. A number of observations are made about the impact of each policy on the supply chain performance. The models we developed are solved by using a commercial software GAMS/CPLEX. We use the state of Mississippi as the testing grounds for these models, and employ ArcGIS to visualize and validate the results from the optimization models.

Suggested Citation

  • Mohammad Marufuzzaman & Sandra Duni Ekşioğlu & Rafael Hernandez, 2014. "Environmentally Friendly Supply Chain Planning and Design for Biodiesel Production via Wastewater Sludge," Transportation Science, INFORMS, vol. 48(4), pages 555-574, November.
    • Handle: RePEc:inm:ortrsc:v:48:y:2014:i:4:p:555-574
    DOI: 10.1287/trsc.2013.0505
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.2013.0505
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.2013.0505?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Huang, Yongxi & Chen, Chien-Wei & Fan, Yueyue, 2010. "Multistage optimization of the supply chains of biofuels," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 820-830, November.
    2. Jingpu Song & Mingming Leng, 2012. "Analysis of the Single-Period Problem under Carbon Emissions Policies," International Series in Operations Research & Management Science, in: Tsan-Ming Choi (ed.), Handbook of Newsvendor Problems, edition 127, chapter 0, pages 297-313, Springer.
    3. Burtraw, Dallas & Palmer, Karen & Kahn, Danny, 2010. "A symmetric safety valve," Energy Policy, Elsevier, vol. 38(9), pages 4921-4932, September.
    4. Michael Grubb & Karsten Neuhoff, 2006. "Allocation and competitiveness in the EU emissions trading scheme: policy overview," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 7-30, January.
    5. Hettinga, W.G. & Junginger, H.M. & Dekker, S.C. & Hoogwijk, M. & McAloon, A.J. & Hicks, K.B., 2009. "Understanding the reductions in US corn ethanol production costs: An experience curve approach," Energy Policy, Elsevier, vol. 37(1), pages 190-203, January.
    6. Webster, Mort & Sue Wing, Ian & Jakobovits, Lisa, 2010. "Second-best instruments for near-term climate policy: Intensity targets vs. the safety valve," Journal of Environmental Economics and Management, Elsevier, vol. 59(3), pages 250-259, May.
    7. Stan van Hoesel & H. Edwin Romeijn & Dolores Romero Morales & Albert P. M. Wagelmans, 2005. "Integrated Lot Sizing in Serial Supply Chains with Production Capacities," Management Science, INFORMS, vol. 51(11), pages 1706-1719, November.
    8. Chen, Chien-Wei & Fan, Yueyue, 2012. "Bioethanol supply chain system planning under supply and demand uncertainties," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 150-164.
    9. Jacoby, Henry D. & Ellerman, A. Denny, 2004. "The safety valve and climate policy," Energy Policy, Elsevier, vol. 32(4), pages 481-491, March.
    10. Cédric Philibert, 2009. "Assessing the value of price caps and floors," Climate Policy, Taylor & Francis Journals, vol. 9(6), pages 612-633, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jie Lu & Feng Li & Desheng Wu, 2024. "A Two-Stage Sustainable Supplier Selection Model Considering Disruption Risk," Sustainability, MDPI, vol. 16(9), pages 1-21, May.
    2. Sadeghi Darvazeh, Saeed & Mansoori Mooseloo, Farzaneh & Gholian-Jouybari, Fatemeh & Amiri, Maghsoud & Bonakdari, Hossein & Hajiaghaei-Keshteli, Mostafa, 2024. "Data-driven robust optimization to design an integrated sustainable forest biomass-to-electricity network under disjunctive uncertainties," Applied Energy, Elsevier, vol. 356(C).
    3. Marufuzzaman, Mohammad & Ekşioğlu, Sandra Duni, 2017. "Managing congestion in supply chains via dynamic freight routing: An application in the biomass supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 54-76.
    4. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    5. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    6. Rofin T.M. & Umakanta Mishra & Jei-Zheng Wu, 2022. "Performance of Channel Members under Emission-Sensitive Demand for Green Supply Chain Management: A Game Theory Approach," Mathematics, MDPI, vol. 10(11), pages 1-23, May.
    7. Waltho, Cynthia & Elhedhli, Samir & Gzara, Fatma, 2019. "Green supply chain network design: A review focused on policy adoption and emission quantification," International Journal of Production Economics, Elsevier, vol. 208(C), pages 305-318.
    8. Bairamzadeh, Samira & Saidi-Mehrabad, Mohammad & Pishvaee, Mir Saman, 2018. "Modelling different types of uncertainty in biofuel supply network design and planning: A robust optimization approach," Renewable Energy, Elsevier, vol. 116(PA), pages 500-517.
    9. Malladi, Krishna Teja & Sowlati, Taraneh, 2020. "Bi-objective optimization of biomass supply chains considering carbon pricing policies," Applied Energy, Elsevier, vol. 264(C).
    10. Lance W. Saunders & J. Paul Brooks & Jason R. W. Merrick & Chad W. Autry, 2020. "Addressing Economic/Environmental Sustainability Trade‐offs in Procurement Episodes with Industrial Suppliers," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1256-1269, May.
    11. T. M. Rofin & Maheswar Singha Mahapatra & Biswajit Mahanty, 2021. "Impact of green retail operations on the profit of the manufacturer and the retailer under different pricing strategies," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 125-143, March.
    12. Tim Kraft & León Valdés & Yanchong Zheng, 2020. "Motivating Supplier Social Responsibility Under Incomplete Visibility," Manufacturing & Service Operations Management, INFORMS, vol. 22(6), pages 1268-1286, November.
    13. Najafi, Fatemeh & Sedaghat, Ahmad & Mostafaeipour, Ali & Issakhov, Alibek, 2021. "Location assessment for producing biodiesel fuel from Jatropha Curcas in Iran," Energy, Elsevier, vol. 236(C).
    14. Y. Mechouar & Vincent Hovelaque & Carl Gaigne, 2022. "Effect of raw material substitution on the facility location decision under a carbon tax policy," Post-Print halshs-03517835, HAL.
    15. Malladi, Krishna Teja & Sowlati, Taraneh, 2020. "Impact of carbon pricing policies on the cost and emission of the biomass supply chain: Optimization models and a case study," Applied Energy, Elsevier, vol. 267(C).
    16. Tang, Ruihong & Yang, Lei, 2020. "Impacts of financing mechanism and power structure on supply chains under cap-and-trade regulation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 139(C).
    17. Youcef MECHOUAR & V Hovelaque & C Gaigné, 2021. "Effect of raw material substitution on the facility location decision under a carbon tax policy," Post-Print hal-04155066, HAL.
    18. Fang, Yuan & Yu, Yugang & Shi, Ye & Liu, Jie, 2020. "The effect of carbon tariffs on global emission control: A global supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    19. Tang, Ruihong & Yang, Lei & Ji, Jingna, 2023. "Impacts of fairness concerns on financing equilibrium in a low-carbon supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    20. Mohammad S. Roni & Sandra D. Eksioglu & Kara G. Cafferty & Jacob J. Jacobson, 2017. "A multi-objective, hub-and-spoke model to design and manage biofuel supply chains," Annals of Operations Research, Springer, vol. 249(1), pages 351-380, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wood, Peter John & Jotzo, Frank, 2011. "Price floors for emissions trading," Energy Policy, Elsevier, vol. 39(3), pages 1746-1753, March.
    2. Brauneis, Alexander & Mestel, Roland & Palan, Stefan, 2013. "Inducing low-carbon investment in the electric power industry through a price floor for emissions trading," Energy Policy, Elsevier, vol. 53(C), pages 190-204.
    3. repec:grz:wpsses:2011-01 is not listed on IDEAS
    4. Stranlund, John K. & Moffitt, L. Joe, 2014. "Enforcement and price controls in emissions trading," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 20-38.
    5. Stranlund, John K. & Murphy, James J. & Spraggon, John M., 2014. "Price controls and banking in emissions trading: An experimental evaluation," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 71-86.
    6. Yu, Jongmin & Mallory, Mindy L., 2015. "An optimal hybrid emission control system in a multiple compliance period model," Resource and Energy Economics, Elsevier, vol. 39(C), pages 16-28.
    7. Dongmei Guo & Yi Hu & Bingjie Zhang, 2014. "Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion," Discrete Dynamics in Nature and Society, Hindawi, vol. 2014, pages 1-7, May.
    8. John Stranlund, 2015. "A Note on Correlated Uncertainty and Hybrid Environmental Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(4), pages 463-476, August.
    9. Richstein, Jörn C. & Chappin, Emile J.L. & de Vries, Laurens J., 2014. "Cross-border electricity market effects due to price caps in an emission trading system: An agent-based approach," Energy Policy, Elsevier, vol. 71(C), pages 139-158.
    10. Li, Xiaohong & Yang, Dong & Hu, Mengqi, 2018. "A scenario-based stochastic programming approach for the product configuration problem under uncertainties and carbon emission regulations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 126-146.
    11. Fankhauser, Samuel & Hepburn, Cameron, 2010. "Designing carbon markets. Part I: Carbon markets in time," Energy Policy, Elsevier, vol. 38(8), pages 4363-4370, August.
    12. Ba, Birome Holo & Prins, Christian & Prodhon, Caroline, 2016. "Models for optimization and performance evaluation of biomass supply chains: An Operations Research perspective," Renewable Energy, Elsevier, vol. 87(P2), pages 977-989.
    13. David M. Newbery & David M. Reiner & Robert A. Ritz, 2018. "When is a carbon price floor desirable?," Working Papers EPRG 1816, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    14. Roni, Md.S. & Eksioglu, Sandra D. & Searcy, Erin & Jha, Krishna, 2014. "A supply chain network design model for biomass co-firing in coal-fired power plants," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 115-134.
    15. Adrian Amelung, 2016. "Das "Paris-Agreement": Durchbruch der Top-Down-Klimaschutzverhandlungen im Kreise der Vereinten Nationen," Otto-Wolff-Institut Discussion Paper Series 03/2016, Otto-Wolff-Institut für Wirtschaftsordnung, Köln, Deutschland.
    16. Timothy N. Cason & John K. Stranlund & Frans P. de Vries, 2022. "Investment Incentives in Tradable Emissions Markets with Price Floors Approach," Purdue University Economics Working Papers 1331, Purdue University, Department of Economics.
    17. Hasegawa, Makoto & Salant, Stephen, 2014. "Cap-and-trade programs under delayed compliance: Consequences of interim injections of permits," Journal of Public Economics, Elsevier, vol. 119(C), pages 24-34.
    18. Abrell, Jan & Rausch, Sebastian, 2017. "Combining price and quantity controls under partitioned environmental regulation," Journal of Public Economics, Elsevier, vol. 145(C), pages 226-242.
    19. Branger, Frédéric & Quirion, Philippe, 2014. "Price versus Quantities versus Indexed Quantities," Climate Change and Sustainable Development 187277, Fondazione Eni Enrico Mattei (FEEM).
    20. Wang, Banban & Pizer, William A. & Munnings, Clayton, 2022. "Price limits in a tradable performance standard," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    21. Sandoff, Anders & Schaad, Gabriela, 2009. "Does EU ETS lead to emission reductions through trade? The case of the Swedish emissions trading sector participants," Energy Policy, Elsevier, vol. 37(10), pages 3967-3977, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ortrsc:v:48:y:2014:i:4:p:555-574. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.