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A two-stage chance-constrained stochastic programming model for a bio-fuel supply chain network

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  • Quddus, Md Abdul
  • Chowdhury, Sudipta
  • Marufuzzaman, Mohammad
  • Yu, Fei
  • Bian, Linkan

Abstract

This study presents a two-stage chance-constrained stochastic programming model that captures the uncertainties due to feedstock seasonality in a bio-fuel supply chain network. The chance-constraint ensures that, with a high probability, Municipal Solid Waste (MSW) will be utilized for bio-fuel production. To solve our proposed optimization model, we use a combined sample average approximation algorithm. We use the state of Mississippi as a testing ground to visualize and validate the modeling results. Our computational experiments reveal some insightful results about the impact of MSW utilization on a bio-fuel supply chain network performance.

Suggested Citation

  • Quddus, Md Abdul & Chowdhury, Sudipta & Marufuzzaman, Mohammad & Yu, Fei & Bian, Linkan, 2018. "A two-stage chance-constrained stochastic programming model for a bio-fuel supply chain network," International Journal of Production Economics, Elsevier, vol. 195(C), pages 27-44.
    • Handle: RePEc:eee:proeco:v:195:y:2018:i:c:p:27-44
    DOI: 10.1016/j.ijpe.2017.09.019
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    Cited by:

    1. Quddus, Md Abdul & Kabli, Mohannad & Marufuzzaman, Mohammad, 2019. "Modeling electric vehicle charging station expansion with an integration of renewable energy and Vehicle-to-Grid sources," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 251-279.
    2. Cecil Ash & Uday Venkatadri & Claver Diallo & Peter Vanberkel & Ahmed Saif, 2023. "PPE Supply Optimization Under Risks of Disruption from the COVID-19 Pandemic," SN Operations Research Forum, Springer, vol. 4(2), pages 1-29, June.
    3. Dianzheng Fu & Tianji Yang & Yize Huang & Yiming Tong, 2022. "Integrated Optimization for Biofuel Management Associated with a Biomass-Penetrated Heating System under Multiple and Compound Uncertainties," Energies, MDPI, vol. 15(15), pages 1-21, July.
    4. Xin Zhang & Gang Zhao & Yingxiu Qi & Botang Li, 2019. "A Robust Fuzzy Optimization Model for Closed-Loop Supply Chain Networks Considering Sustainability," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
    5. Muhammad Imran & Muhammad Salman Habib & Amjad Hussain & Naveed Ahmed & Abdulrahman M. Al-Ahmari, 2020. "Inventory Routing Problem in Supply Chain of Perishable Products under Cost Uncertainty," Mathematics, MDPI, vol. 8(3), pages 1-29, March.
    6. Khishtandar, Soheila, 2019. "Simulation based evolutionary algorithms for fuzzy chance-constrained biogas supply chain design," Applied Energy, Elsevier, vol. 236(C), pages 183-195.
    7. Chagas, Guilherme O. & Coelho, Leandro C. & Darvish, Maryam & Renaud, Jacques, 2023. "Modeling and solving the waste valorization production and distribution scheduling problem," European Journal of Operational Research, Elsevier, vol. 306(1), pages 400-417.
    8. Ouhimmou, Mustapha & Nourelfath, Mustapha & Bouchard, Mathieu & Bricha, Naji, 2019. "Design of robust distribution network under demand uncertainty: A case study in the pulp and paper," International Journal of Production Economics, Elsevier, vol. 218(C), pages 96-105.
    9. Wang, Youzhi & Guo, Ping, 2021. "Irrigation water resources optimization with consideration of the regional agro-hydrological process of crop growth and multiple uncertainties," Agricultural Water Management, Elsevier, vol. 245(C).
    10. Ming Liu & Rongfan Liu & E Zhang & Chengbin Chu, 2022. "Eco-friendly container transshipment route scheduling problem with repacking operations," Journal of Combinatorial Optimization, Springer, vol. 43(5), pages 1010-1035, July.
    11. Dafnomilis, I. & Duinkerken, M.B. & Junginger, M. & Lodewijks, G. & Schott, D.L., 2018. "Optimal equipment deployment for biomass terminal operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 147-163.
    12. Wolff, Michael & Becker, Tristan & Walther, Grit, 2023. "Long-term design and analysis of renewable fuel supply chains – An integrated approach considering seasonal resource availability," European Journal of Operational Research, Elsevier, vol. 304(2), pages 745-762.
    13. Razm, Sobhan & Brahimi, Nadjib & Hammami, Ramzi & Dolgui, Alexandre, 2023. "A production planning model for biorefineries with biomass perishability and biofuel transformation," International Journal of Production Economics, Elsevier, vol. 258(C).
    14. Sushil Poudel & Mohammad Marufuzzaman & Md Abdul Quddus & Sudipta Chowdhury & Linkan Bian & Brian Smith, 2018. "Designing a Reliable and Congested Multi-Modal Facility Location Problem for Biofuel Supply Chain Network," Energies, MDPI, vol. 11(7), pages 1-24, June.
    15. Khouloud Dorgham & Issam Nouaouri & Jean-Christophe Nicolas & Gilles Goncalves, 2022. "Collaborative hospital supply chain network design problem under uncertainty," Operational Research, Springer, vol. 22(5), pages 4607-4640, November.
    16. Daniela Guericke & Ignacio Blanco & Juan M. Morales & Henrik Madsen, 2020. "A two-phase stochastic programming approach to biomass supply planning for combined heat and power plants," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(4), pages 863-900, December.
    17. Quddus, Md Abdul & Shahvari, Omid & Marufuzzaman, Mohammad & Usher, John M. & Jaradat, Raed, 2018. "A collaborative energy sharing optimization model among electric vehicle charging stations, commercial buildings, and power grid," Applied Energy, Elsevier, vol. 229(C), pages 841-857.
    18. Ming Liu & Rongfan Liu & E Zhang & Chengbin Chu, 0. "Eco-friendly container transshipment route scheduling problem with repacking operations," Journal of Combinatorial Optimization, Springer, vol. 0, pages 1-26.
    19. Li, Xinchao & Lu, Shan & Li, Zhe & Wang, Yue & Zhu, Li, 2022. "Modeling and optimization of bioethanol production planning under hybrid uncertainty: A heuristic multi-stage stochastic programming approach," Energy, Elsevier, vol. 245(C).
    20. Yılmaz Balaman, Şebnem & Wright, Daniel G. & Scott, James & Matopoulos, Aristides, 2018. "Network design and technology management for waste to energy production: An integrated optimization framework under the principles of circular economy," Energy, Elsevier, vol. 143(C), pages 911-933.
    21. Wei Xu & Dong-Ping Song, 2022. "Integrated optimisation for production capacity, raw material ordering and production planning under time and quantity uncertainties based on two case studies," Operational Research, Springer, vol. 22(3), pages 2343-2371, July.
    22. Ng, Rex T.L. & Kurniawan, Daniel & Wang, Hua & Mariska, Brian & Wu, Wenzhao & Maravelias, Christos T., 2018. "Integrated framework for designing spatially explicit biofuel supply chains," Applied Energy, Elsevier, vol. 216(C), pages 116-131.
    23. Farajiamiri, Mina & Meyer, Jörn-Christian & Walther, Grit, 2023. "Multi-objective optimization of renewable fuel supply chains regarding cost, land use, and water use," Applied Energy, Elsevier, vol. 349(C).

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