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Is Bio-Supply Chain a Feasibility in India? An Uncertainty-Based Study

In: Applications of Operational Research in Business and Industries

Author

Listed:
  • Kapil Gumte

    (Indian Institute of Technology Hyderabad)

  • Kishalay Mitra

    (Indian Institute of Technology Hyderabad
    Indian Institute of Technology Hyderabad)

Abstract

Aligning with environment-friendly move by Indian government to blend gasoline and diesel with 20% bio-products, a countrywide multi-product supply chain network has been designed. The sustainable, techno-economic, and environment-friendly model has been formulated considering conflicting objectives involving net present value and greenhouse gas emissions while determining the network design and flow decisions using a multi-period mixed integer linear programming approach. To face the special challenge of continuous feed supply across the year in India, model allows handling multiple feed and their respective technologies considering spatial–temporal distribution of biomass. Imports are blended with the indigenous products to maintain product quantity and production shortfall. The model generates revenue by selling the bio-products and greenhouse gas carbon credits. The uncertainties involved in product demand, externally imported price and biomass raw material feed, are handled via robust optimization methodology considering realizations of possible uncertain scenarios. Based on real demand data of products during 2018–2026, the deterministic and stochastic nature of results have been studied thoroughly. The sensitivity analysis implicates atleast 45% of biomass raw material supply, to run the bioenergy sector successfully under worst possible scenario.

Suggested Citation

  • Kapil Gumte & Kishalay Mitra, 2023. "Is Bio-Supply Chain a Feasibility in India? An Uncertainty-Based Study," Lecture Notes in Operations Research, in: Angappa Gunasekaran & Jai Kishore Sharma & Samarjit Kar (ed.), Applications of Operational Research in Business and Industries, chapter 0, pages 253-271, Springer.
    • Handle: RePEc:spr:lnopch:978-981-19-8012-1_17
    DOI: 10.1007/978-981-19-8012-1_17
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