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A multi-objective, hub-and-spoke model to design and manage biofuel supply chains

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Abstract

In this paper we propose a multi-objective, mixed integer linear programming model to design and manage the supply chain for biofuels. This model captures the trade-offs that exist between costs, environmental and social impacts of delivering biofuels. The in-bound supply chain for biofuel plants relies on a hub-and-spoke structure which optimizes transportation costs of biomass. The model proposed optimizes the \(\hbox {CO}_{2}\) emissions due to transportation-related activities in the supply chain. The model also optimizes the social impact of biofuels. The social impacts are evaluated by the number of jobs created. The multi-objective optimization model is solved using an augmented \(\epsilon \)-constraint method. The method provides a set of Pareto optimal solutions. We develop a case study using data from the Midwest region of the USA. The numerical analyses estimates the quantity and cost of cellulosic ethanol delivered under different scenarios generated. The insights we provide will help policy makers design policies which encourage and support renewable energy production.

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Acknowledgments

This work is partially supported by National Science Foundation, grant CMMI 1462420. This support is gratefully acknowledged.

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Authors and Affiliations

  1. Department of Industrial Engineering, Clemson University, Clemson, SC, USA

    Sandra D. Eksioglu

  2. Biofuels and Renewable Energy Technologies, Idaho National Laboratory, Idaho Falls, ID, USA

    Mohammad S. Roni & Kara G. Cafferty

  3. Minds Eye Computing LLC, Idaho Falls, ID, USA

    Jacob J. Jacobson

Authors
  1. Mohammad S. Roni
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  2. Sandra D. Eksioglu
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Corresponding author

Correspondence to Sandra D. Eksioglu.

Appendices

Appendix 1

See Table 7.

Table 7 The definitions of sets, parameters and decision variables used
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Appendix 2

See Tables 8 and 9.

Table 8 Biorefinery locations
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Table 9 Number of job created due to construction and operations of a biorefinery
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Roni, M.S., Eksioglu, S.D., Cafferty, K.G. et al. A multi-objective, hub-and-spoke model to design and manage biofuel supply chains. Ann Oper Res 249, 351–380 (2017). https://doi.org/10.1007/s10479-015-2102-3

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