IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v197y2020ics0360544220302723.html
   My bibliography  Save this article

Design and optimization of biomass electricity supply chain with uncertainty in material quality, availability and market demand

Author

Listed:
  • Saghaei, Mahsa
  • Ghaderi, Hadi
  • Soleimani, Hamed

Abstract

Biomass electricity supply chains are prone to a range of uncertainties that emanate internally or externally. Therefore, design of robust supply chains that remain resilient in the face of disruptions becomes of important interest. This study presents a two-stage stochastic mixed integer non-linear programming (MINLP) model combined with chance constraint to minimize the total cost of producing electricity from woody biomass in a four-level integrated bioenergy supply chain. The strategic decisions such as location and capacity of infrastructure are incorporated into the first stage, and decisions for sourcing the materials, inventory policy and are included in the second-stage. The proposed model considers detailed climate factors such as temperature and dew point, which are highly influential on moisture content, higher heating value, energy values, and ultimately, the performance of bioenergy supply chain. Given the NP-hard nature of the problem, hybrid metaheuristic approach is proposed that benefits from genetic algorithm (GA) operators and chaos theory in the structure of an improved cross entropy (CE) algorithm. Compared to the results of exact solution, the proposed ICE performs better compared to conventional CE by 5.6%.

Suggested Citation

  • Saghaei, Mahsa & Ghaderi, Hadi & Soleimani, Hamed, 2020. "Design and optimization of biomass electricity supply chain with uncertainty in material quality, availability and market demand," Energy, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:energy:v:197:y:2020:i:c:s0360544220302723
    DOI: 10.1016/j.energy.2020.117165
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544220302723
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2020.117165?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alatas, Bilal & Akin, Erhan & Ozer, A. Bedri, 2009. "Chaos embedded particle swarm optimization algorithms," Chaos, Solitons & Fractals, Elsevier, vol. 40(4), pages 1715-1734.
    2. Saidur, R. & Abdelaziz, E.A. & Demirbas, A. & Hossain, M.S. & Mekhilef, S., 2011. "A review on biomass as a fuel for boilers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2262-2289, June.
    3. 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.
    4. Shabani, Nazanin & Akhtari, Shaghaygh & Sowlati, Taraneh, 2013. "Value chain optimization of forest biomass for bioenergy production: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 299-311.
    5. 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.
    6. Reuven Rubinstein, 1999. "The Cross-Entropy Method for Combinatorial and Continuous Optimization," Methodology and Computing in Applied Probability, Springer, vol. 1(2), pages 127-190, September.
    7. Ekren, Orhan & Ekren, Banu Y., 2010. "Size optimization of a PV/wind hybrid energy conversion system with battery storage using simulated annealing," Applied Energy, Elsevier, vol. 87(2), pages 592-598, February.
    8. Altiparmak, Fulya & Dengiz, Berna, 2009. "A cross entropy approach to design of reliable networks," European Journal of Operational Research, Elsevier, vol. 199(2), pages 542-552, December.
    9. Krystel K. Castillo-Villar, 2014. "Metaheuristic Algorithms Applied to Bioenergy Supply Chain Problems: Theory, Review, Challenges, and Future," Energies, MDPI, vol. 7(11), pages 1-33, November.
    10. P Flisberg & M Frisk & M Rönnqvist, 2012. "FuelOpt: a decision support system for forest fuel logistics," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(11), pages 1600-1612, November.
    11. Poudel, Sushil Raj & Marufuzzaman, Mohammad & Bian, Linkan, 2016. "A hybrid decomposition algorithm for designing a multi-modal transportation network under biomass supply uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 1-25.
    12. Celik, Ali Naci, 2004. "A statistical analysis of wind power density based on the Weibull and Rayleigh models at the southern region of Turkey," Renewable Energy, Elsevier, vol. 29(4), pages 593-604.
    13. Baños, R. & Manzano-Agugliaro, F. & Montoya, F.G. & Gil, C. & Alcayde, A. & Gómez, J., 2011. "Optimization methods applied to renewable and sustainable energy: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1753-1766, May.
    14. Cambero, Claudia & Sowlati, Taraneh, 2014. "Assessment and optimization of forest biomass supply chains from economic, social and environmental perspectives – A review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 62-73.
    15. 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.
    16. Soliño, Mario & Oviedo, José L. & Caparrós, Alejandro, 2018. "Are forest landowners ready for woody energy crops? Preferences for afforestation programs in Southern Spain," Energy Economics, Elsevier, vol. 73(C), pages 239-247.
    17. Khatiwada, Dilip & Leduc, Sylvain & Silveira, Semida & McCallum, Ian, 2016. "Optimizing ethanol and bioelectricity production in sugarcane biorefineries in Brazil," Renewable Energy, Elsevier, vol. 85(C), pages 371-386.
    18. Fred Glover & Eugene Woolsey, 1974. "Technical Note—Converting the 0-1 Polynomial Programming Problem to a 0-1 Linear Program," Operations Research, INFORMS, vol. 22(1), pages 180-182, February.
    19. Md. Bedarul Alam & Reino Pulkki & Chander Shahi & Thakur Upadhyay, 2012. "Modeling Woody Biomass Procurement for Bioenergy Production at the Atikokan Generating Station in Northwestern Ontario, Canada," Energies, MDPI, vol. 5(12), pages 1-21, December.
    20. Rentizelas, Athanasios A. & Tolis, Athanasios J. & Tatsiopoulos, Ilias P., 2009. "Logistics issues of biomass: The storage problem and the multi-biomass supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 887-894, May.
    21. Iqbal, M. & Azam, M. & Naeem, M. & Khwaja, A.S. & Anpalagan, A., 2014. "Optimization classification, algorithms and tools for renewable energy: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 640-654.
    22. Narayan, Paresh Kumar & Smyth, Russell, 2005. "Electricity consumption, employment and real income in Australia evidence from multivariate Granger causality tests," Energy Policy, Elsevier, vol. 33(9), pages 1109-1116, June.
    23. Lochhead, Kyle & Ghafghazi, Saeed & Havlik, Petr & Forsell, Nicklas & Obersteiner, Michael & Bull, Gary & Mabee, Warren, 2016. "Price trends and volatility scenarios for designing forest sector transformation," Energy Economics, Elsevier, vol. 57(C), pages 184-191.
    24. Fahimnia, Behnam & Sarkis, Joseph & Choudhary, Alok & Eshragh, Ali, 2015. "Tactical supply chain planning under a carbon tax policy scheme: A case study," International Journal of Production Economics, Elsevier, vol. 164(C), pages 206-215.
    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. Govindan, Kannan & Gholizadeh, Hadi, 2021. "Robust network design for sustainable-resilient reverse logistics network using big data: A case study of end-of-life vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    2. Lo, Shirleen Lee Yuen & How, Bing Shen & Teng, Sin Yong & Lam, Hon Loong & Lim, Chun Hsion & Rhamdhani, Muhammad Akbar & Sunarso, Jaka, 2021. "Stochastic techno-economic evaluation model for biomass supply chain: A biomass gasification case study with supply chain uncertainties," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    3. Mohd Yahya, Nur Syahira & Ng, Lik Yin & Andiappan, Viknesh, 2021. "Optimisation and planning of biomass supply chain for new and existing power plants based on carbon reduction targets," Energy, Elsevier, vol. 237(C).
    4. Sumeet Sahay & Hemant Kumar Kaushik & Shikha Singh, 2023. "Discovering themes and trends in electricity supply chain area research," OPSEARCH, Springer;Operational Research Society of India, vol. 60(3), pages 1525-1560, September.
    5. Sesini, Marzia & Giarola, Sara & Hawkes, Adam D., 2022. "Solidarity measures: Assessment of strategic gas storage on EU regional risk groups natural gas supply resilience," Applied Energy, Elsevier, vol. 308(C).
    6. Balezentis, Tomas & Zickiene, Agne & Volkov, Artiom & Streimikiene, Dalia & Morkunas, Mangirdas & Dabkiene, Vida & Ribasauskiene, Erika, 2023. "Measures for the viable agri-food supply chains: A multi-criteria approach," Journal of Business Research, Elsevier, vol. 155(PA).
    7. Antonio Zavala-Alcívar & María-José Verdecho & Juan-José Alfaro-Saiz, 2020. "A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(16), pages 1-38, August.
    8. Suzan Abdelhady & Mohamed A. Shalaby & Ahmed Shaban, 2021. "Techno-Economic Analysis for the Optimal Design of a National Network of Agro-Energy Biomass Power Plants in Egypt," Energies, MDPI, vol. 14(11), pages 1-26, May.
    9. Pournader, Mehrdokht & Ghaderi, Hadi & Hassanzadegan, Amir & Fahimnia, Behnam, 2021. "Artificial intelligence applications in supply chain management," International Journal of Production Economics, Elsevier, vol. 241(C).
    10. Islam Hassanin & Matjaz Knez, 2022. "Managing Supply Chain Activities in the Field of Energy Production Focusing on Renewables," Sustainability, MDPI, vol. 14(12), pages 1-33, June.
    11. Lin Chen & Ting Dong & Jin Peng & Dan Ralescu, 2023. "Uncertainty Analysis and Optimization Modeling with Application to Supply Chain Management: A Systematic Review," Mathematics, MDPI, vol. 11(11), pages 1-45, May.
    12. Sesini, Marzia & Giarola, Sara & Hawkes, Adam D., 2021. "Strategic natural gas storage coordination among EU member states in response to disruption in the trans Austria gas pipeline: A stochastic approach to solidarity," Energy, Elsevier, vol. 235(C).
    13. Jenny R. Frank & Tristan R. Brown & Rohit D. Bhonagiri & Ryan J. Quinn & Kirsten C. McGiver & Marie-Odile P. Fortier & Robert W. Malmsheimer & Timothy A. Volk & Thomas R. Dapp, 2023. "Assessing Indian Point’s Electricity Generation Through Renewable Energy Pathways: A Technical and Economic Analysis," Energy & Environment, , vol. 34(4), pages 989-1005, June.
    14. Potrč, Sanja & Čuček, Lidija & Martin, Mariano & Kravanja, Zdravko, 2021. "Sustainable renewable energy supply networks optimization – The gradual transition to a renewable energy system within the European Union by 2050," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    15. Zhang, Shuai & Lei, Qingyu & Wu, Le & Wang, Yuqi & Zheng, Lan & Chen, Xi, 2022. "Supply chain design and integration for the Co-Processing of bio-oil and vacuum gas oil in a refinery," Energy, Elsevier, vol. 241(C).

    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. Malladi, Krishna Teja & Sowlati, Taraneh, 2018. "Biomass logistics: A review of important features, optimization modeling and the new trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 587-599.
    2. Mirkouei, Amin & Haapala, Karl R. & Sessions, John & Murthy, Ganti S., 2017. "A review and future directions in techno-economic modeling and optimization of upstream forest biomass to bio-oil supply chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 15-35.
    3. 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.
    4. Lo, Shirleen Lee Yuen & How, Bing Shen & Leong, Wei Dong & Teng, Sin Yong & Rhamdhani, Muhammad Akbar & Sunarso, Jaka, 2021. "Techno-economic analysis for biomass supply chain: A state-of-the-art review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    5. Shabani, Nazanin & Akhtari, Shaghaygh & Sowlati, Taraneh, 2013. "Value chain optimization of forest biomass for bioenergy production: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 299-311.
    6. Deboni, Tamires Liza & Simioni, Flávio José & Brand, Martha Andreia & Costa, Valdeci José, 2019. "Models for estimating the price of forest biomass used as an energy source: A Brazilian case," Energy Policy, Elsevier, vol. 127(C), pages 382-391.
    7. Palander, Teijo & Haavikko, Hanna & Kärhä, Kalle, 2018. "Towards sustainable wood procurement in forest industry – The energy efficiency of larger and heavier vehicles in Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 100-118.
    8. Mosayeb Dashtpeyma & Reza Ghodsi, 2021. "Forest Biomass and Bioenergy Supply Chain Resilience: A Systematic Literature Review on the Barriers and Enablers," Sustainability, MDPI, vol. 13(12), pages 1-21, June.
    9. Mavromatidis, Georgios & Orehounig, Kristina & Carmeliet, Jan, 2018. "A review of uncertainty characterisation approaches for the optimal design of distributed energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 258-277.
    10. Ahn, Yu-Chan & Lee, In-Beum & Lee, Kun-Hong & Han, Jee-Hoon, 2015. "Strategic planning design of microalgae biomass-to-biodiesel supply chain network: Multi-period deterministic model," Applied Energy, Elsevier, vol. 154(C), pages 528-542.
    11. 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.
    12. Tatiana M. Pinho & João Paulo Coelho & Germano Veiga & A. Paulo Moreira & José Boaventura-Cunha, 2017. "A Multilayer Model Predictive Control Methodology Applied to a Biomass Supply Chain Operational Level," Complexity, Hindawi, vol. 2017, pages 1-10, July.
    13. Leonel J. R. Nunes & Sandra Silva, 2023. "Optimization of the Residual Biomass Supply Chain: Process Characterization and Cost Analysis," Logistics, MDPI, vol. 7(3), pages 1-21, August.
    14. Santos, Andreia & Carvalho, Ana & Barbosa-Póvoa, Ana Paula & Marques, Alexandra & Amorim, Pedro, 2019. "Assessment and optimization of sustainable forest wood supply chains – A systematic literature review," Forest Policy and Economics, Elsevier, vol. 105(C), pages 112-135.
    15. Abasian, Foroogh & Rönnqvist, Mikael & Ouhimmou, Mustapha, 2019. "Forest bioenergy network design under market uncertainty," Energy, Elsevier, vol. 188(C).
    16. Xuezhen Guo & Juliën Voogt & Bert Annevelink & Joost Snels & Argyris Kanellopoulos, 2020. "Optimizing Resource Utilization in Biomass Supply Chains by Creating Integrated Biomass Logistics Centers," Energies, MDPI, vol. 13(22), pages 1-16, November.
    17. Mobtaker, A. & Ouhimmou, M. & Audy, J.-F. & Rönnqvist, M., 2021. "A review on decision support systems for tactical logistics planning in the context of forest bioeconomy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    18. Martinez-Valencia, Lina & Garcia-Perez, Manuel & Wolcott, Michael P., 2021. "Supply chain configuration of sustainable aviation fuel: Review, challenges, and pathways for including environmental and social benefits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    19. Kanematsu, Yuichiro & Oosawa, Kazutake & Okubo, Tatsuya & Kikuchi, Yasunori, 2017. "Designing the scale of a woody biomass CHP considering local forestry reformation: A case study of Tanegashima, Japan," Applied Energy, Elsevier, vol. 198(C), pages 160-172.
    20. Leonardo Rivera-Cadavid & Pablo Cesar Manyoma-Velásquez & Diego F. Manotas-Duque, 2019. "Supply Chain Optimization for Energy Cogeneration Using Sugarcane Crop Residues (SCR)," Sustainability, MDPI, vol. 11(23), pages 1-15, November.

    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:eee:energy:v:197:y:2020:i:c:s0360544220302723. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    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.