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Analyzing the impact of intermodal-related risk to the design and management of biofuel supply chain

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  • Marufuzzaman, Mohammad
  • Eksioglu, Sandra D.
  • Li, Xiaopeng
  • Wang, Jin

Abstract

This study presents a mathematical model that designs a reliable multi-modal transportation network for a biofuel supply chain system, where intermodal hubs are subject to site-dependent probabilistic disruptions. The disruption probabilities of intermodal hubs are estimated by using a probabilistic model which is developed using real world data. We developed an accelerated Benders decomposition algorithm to solve this challenging NP-hard problem. Numerical analysis show that the model selects to use intermodal hubs located in areas with low disruption probabilities. In case of a disaster, the reliable solution results in 6.21% savings over the minimum cost solution.

Suggested Citation

  • Marufuzzaman, Mohammad & Eksioglu, Sandra D. & Li, Xiaopeng & Wang, Jin, 2014. "Analyzing the impact of intermodal-related risk to the design and management of biofuel supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 122-145.
    • Handle: RePEc:eee:transe:v:69:y:2014:i:c:p:122-145
    DOI: 10.1016/j.tre.2014.06.008
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