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Biofuel refinery location and supply chain planning under traffic congestion

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  • Bai, Yun
  • Hwang, Taesung
  • Kang, Seungmo
  • Ouyang, Yanfeng
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    Abstract

    This research focuses on planning biofuel refinery locations where the total system cost for refinery investment, feedstock and product transportation and public travel is minimized. Shipment routing of both feedstock and product in the biofuel supply chain and the resulting traffic congestion impact are incorporated into the model to decide optimal locations of biofuel refineries. A Lagrangian relaxation based heuristic algorithm is introduced to obtain near-optimum feasible solutions efficiently. To further improve optimality, a branch-and-bound framework (with linear programming relaxation and Lagrangian relaxation bounding procedures) is developed. Numerical experiments with several testing examples demonstrate that the proposed algorithms solve the problem effectively. An empirical Illinois case study and a series of sensitivity analyses are conducted to show the effects of highway congestion on refinery location design and total system costs.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 45 (2011)
    Issue (Month): 1 (January)
    Pages: 162-175

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    Handle: RePEc:eee:transb:v:45:y:2011:i:1:p:162-175

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    Related research

    Keywords: Biofuel refinery location Supply chain planning Traffic congestion Mixed-integer program Lagrangian relaxation Branch-and-bound;

    References

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    1. Jayakrishnan, R. & Tsai, Wei T. & Prashker, Joseph N. & Rajadhyaksha, Subodh, 1994. "A Faster Path-Based Algorithm for Traffic Assignment," University of California Transportation Center, Working Papers qt2hf4541x, University of California Transportation Center.
    2. Eathington, Liesl & Swenson, David A., 2007. "Dude, Where's My Corn? Constraints on the Location of Ethanol Production in the Corn Belt," Staff General Research Papers 12777, Iowa State University, Department of Economics.
    3. Marshall L. Fisher, 1981. "The Lagrangian Relaxation Method for Solving Integer Programming Problems," Management Science, INFORMS, vol. 27(1), pages 1-18, January.
    4. Mazzola, Joseph B. & Neebe, Alan W., 1999. "Lagrangian-relaxation-based solution procedures for a multiproduct capacitated facility location problem with choice of facility type," European Journal of Operational Research, Elsevier, vol. 115(2), pages 285-299, June.
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    Citations

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    Cited by:
    1. Wang, Xin & Ouyang, Yanfeng, 2013. "A continuum approximation approach to competitive facility location design under facility disruption risks," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 90-103.
    2. Dekker, R. & Bloemhof-Ruwaard, J.M. & Mallidis, I., 2011. "Operations Research for Green Logistics – An Overview of Aspects, Issues, Contributions and Challenges," Econometric Institute Research Papers EI2011-30, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    3. Maung, Thein A. & Gustafson, Cole R. & Saxowsky, David M. & Nowatzki, John & Miljkovic, Tatjana & Ripplinger, David, 2013. "The logistics of supplying single vs. multi-crop cellulosic feedstocks to a biorefinery in southeast North Dakota," Applied Energy, Elsevier, vol. 109(C), pages 229-238.
    4. Calvert, K., 2011. "Geomatics and bioenergy feasibility assessments: Taking stock and looking forward," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1117-1124, February.
    5. Mafakheri, Fereshteh & Nasiri, Fuzhan, 2014. "Modeling of biomass-to-energy supply chain operations: Applications, challenges and research directions," Energy Policy, Elsevier, vol. 67(C), pages 116-126.
    6. De Meyer, Annelies & Cattrysse, Dirk & Rasinmäki, Jussi & Van Orshoven, Jos, 2014. "Methods to optimise the design and management of biomass-for-bioenergy supply chains: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 657-670.
    7. Bai, Yun & Ouyang, Yanfeng & Pang, Jong-Shi, 2012. "Biofuel supply chain design under competitive agricultural land use and feedstock market equilibrium," Energy Economics, Elsevier, vol. 34(5), pages 1623-1633.
    8. Wang, Xiaolei & Ouyang, Yanfeng & Yang, Hai & Bai, Yun, 2013. "Optimal biofuel supply chain design under consumption mandates with renewable identification numbers," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 158-171.

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