IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v10y2017i11p1895-d119450.html
   My bibliography  Save this article

Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions

Author

Listed:
  • Zhixue Liu

    (School of Management, Huazhong University of Science and Technology, Wuhan 403374, China)

  • Shukun Wang

    (School of Management, Huazhong University of Science and Technology, Wuhan 403374, China)

  • Yanfeng Ouyang

    (Department of Civil and Environmental Engineering, University of Illinois at Urbana-Champaign, Urbana, IL 61801, USA)

Abstract

While biomass has been recognized as an important renewable energy source which has a range of positive impacts on the economy, environment, and society, the existence of feedstock seasonality and risk of service disruptions at collection facilities potentially compromises the efficiency and reliability of the energy supply system. In this paper, we consider reliable supply chain design for biomass collection against feedstock seasonality and time-varying disruption risks. We optimize facility location, inventory, biomass quantity, and shipment decisions in a multi-period planning horizon setting. A real-world case in Hubei, China is studied to offer managerial insights. Our computational results show that: (1) the disruption risk significantly affects both the optimal facility locations and the supply chain cost; (2) no matter how the failure probability changes, setting backup facilities can significantly decrease the total cost; and (3) the feedstock seasonality does not affect locations of the collection facilities, but it affects the allocations of collection facilities and brings higher inventory cost for the biomass supply chain.

Suggested Citation

  • Zhixue Liu & Shukun Wang & Yanfeng Ouyang, 2017. "Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions," Energies, MDPI, vol. 10(11), pages 1-18, November.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:11:p:1895-:d:119450
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/10/11/1895/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/10/11/1895/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huang, Yongxi & Chen, Chien-Wei & Fan, Yueyue, 2010. "Multistage optimization of the supply chains of biofuels," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 820-830, November.
    2. Yun Bai & Xiaopeng Li & Fan Peng & Xin Wang & Yanfeng Ouyang, 2015. "Effects of Disruption Risks on Biorefinery Location Design," Energies, MDPI, vol. 8(2), pages 1-19, February.
    3. Tingting Cui & Yanfeng Ouyang & Zuo-Jun Max Shen, 2010. "Reliable Facility Location Design Under the Risk of Disruptions," Operations Research, INFORMS, vol. 58(4-part-1), pages 998-1011, August.
    4. 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.
    5. Weijun Xie & Yanfeng Ouyang & Sze Chun Wong, 2016. "Reliable Location-Routing Design Under Probabilistic Facility Disruptions," Transportation Science, INFORMS, vol. 50(3), pages 1128-1138, August.
    6. Pettersson, Karin & Wetterlund, Elisabeth & Athanassiadis, Dimitris & Lundmark, Robert & Ehn, Christian & Lundgren, Joakim & Berglin, Niklas, 2015. "Integration of next-generation biofuel production in the Swedish forest industry – A geographically explicit approach," Applied Energy, Elsevier, vol. 154(C), pages 317-332.
    7. Ivanov, Dmitry & Pavlov, Alexander & Dolgui, Alexandre & Pavlov, Dmitry & Sokolov, Boris, 2016. "Disruption-driven supply chain (re)-planning and performance impact assessment with consideration of pro-active and recovery policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 7-24.
    8. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.
    9. Walther, Grit & Schatka, Anne & Spengler, Thomas S., 2012. "Design of regional production networks for second generation synthetic bio-fuel – A case study in Northern Germany," European Journal of Operational Research, Elsevier, vol. 218(1), pages 280-292.
    10. Lawrence V. Snyder & Mark S. Daskin, 2005. "Reliability Models for Facility Location: The Expected Failure Cost Case," Transportation Science, INFORMS, vol. 39(3), pages 400-416, August.
    11. Yongxi (Eric) Huang & Yueyue Fan & Chien-Wei Chen, 2014. "An Integrated Biofuel Supply Chain to Cope with Feedstock Seasonality and Uncertainty," Transportation Science, INFORMS, vol. 48(4), pages 540-554, November.
    12. Li, Xiaopeng & Ouyang, Yanfeng, 2010. "A continuum approximation approach to reliable facility location design under correlated probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 535-548, May.
    13. Michael K. Lim & Achal Bassamboo & Sunil Chopra & Mark S. Daskin, 2013. "Facility Location Decisions with Random Disruptions and Imperfect Estimation," Manufacturing & Service Operations Management, INFORMS, vol. 15(2), pages 239-249, May.
    14. Mozart Menezes & O. Berman & D. Krass, 2007. "Facility Reliability Issues in Network p-Median Problems: Strategic Centralization and Co-location Effects," Post-Print halshs-00170396, HAL.
    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. Tang, Christopher S., 2006. "Perspectives in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 103(2), pages 451-488, October.
    17. 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.
    18. Chen, Qi & Li, Xiaopeng & Ouyang, Yanfeng, 2011. "Joint inventory-location problem under the risk of probabilistic facility disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 45(7), pages 991-1003, August.
    19. Gautam, Shuva & LeBel, Luc & Carle, Marc-André, 2017. "Supply chain model to assess the feasibility of incorporating a terminal between forests and biorefineries," Applied Energy, Elsevier, vol. 198(C), pages 377-384.
    20. Ebadian, Mahmood & Sowlati, Taraneh & Sokhansanj, Shahab & Townley-Smith, Lawrence & Stumborg, Mark, 2013. "Modeling and analysing storage systems in agricultural biomass supply chain for cellulosic ethanol production," Applied Energy, Elsevier, vol. 102(C), pages 840-849.
    21. Cui, Tingting & Ouyang, Yanfeng & Shen, Zuo-Jun Max J, 2010. "Reliable Facility Location Design under the Risk of Disruptions," University of California Transportation Center, Working Papers qt5sh2c7pw, University of California Transportation Center.
    22. Zuo-Jun Max Shen & Roger Lezhou Zhan & Jiawei Zhang, 2011. "The Reliable Facility Location Problem: Formulations, Heuristics, and Approximation Algorithms," INFORMS Journal on Computing, INFORMS, vol. 23(3), pages 470-482, August.
    23. Gedik, Ridvan & Medal, Hugh & Rainwater, Chase & Pohl, Ed A. & Mason, Scott J., 2014. "Vulnerability assessment and re-routing of freight trains under disruptions: A coal supply chain network application," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 45-57.
    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. Yazdanparast, R. & Jolai, F. & Pishvaee, M.S. & Keramati, A., 2022. "A resilient drop-in biofuel supply chain integrated with existing petroleum infrastructure: Toward more sustainable transport fuel solutions," Renewable Energy, Elsevier, vol. 184(C), pages 799-819.
    2. Marta Mańkowska & Michał Pluciński & Izabela Kotowska, 2021. "Biomass Sea-Based Supply Chains and the Secondary Ports in the Era of Decarbonization," Energies, MDPI, vol. 14(7), pages 1-24, March.
    3. Stephen J. Ramos & Umit Yilmaz, 2023. "Energy transition and city–port symbiosis in biomass import–export regions," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(2), pages 406-428, June.
    4. Chukwuma, Emmanuel Chibundo & Okey-Onyesolu, Faith Chinenye & Ani, Kingsley Amaechi & Nwanna, Emmanuel Chukwudi, 2021. "GIS bio-waste assessment and suitability analysis for biogas power plant: A case study of Anambra state of Nigeria," Renewable Energy, Elsevier, vol. 163(C), pages 1182-1194.
    5. Francesca Valenti & Simona M. C. Porto, 2019. "Net Electricity and Heat Generated by Reusing Mediterranean Agro-Industrial By-Products," Energies, MDPI, vol. 12(3), pages 1-15, February.
    6. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    7. 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).

    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. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    2. Mengshi Lu & Lun Ran & Zuo-Jun Max Shen, 2015. "Reliable Facility Location Design Under Uncertain Correlated Disruptions," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 445-455, October.
    3. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Marina Ivanova, 2017. "Literature review on disruption recovery in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(20), pages 6158-6174, October.
    4. Mohammad Marufuzzaman & Sandra Duni Ekşioğlu, 2017. "Designing a Reliable and Dynamic Multimodal Transportation Network for Biofuel Supply Chains," Transportation Science, INFORMS, vol. 51(2), pages 494-517, May.
    5. Salimi, F. & Vahdani, Behnam, 2018. "Designing a bio-fuel network considering links reliability and risk-pooling effect in bio-refineries," Reliability Engineering and System Safety, Elsevier, vol. 174(C), pages 96-107.
    6. Jabbarzadeh, Armin & Fahimnia, Behnam & Sheu, Jiuh-Biing & Moghadam, Hani Shahmoradi, 2016. "Designing a supply chain resilient to major disruptions and supply/demand interruptions," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 121-149.
    7. Yu, Guodong & Zhang, Jie, 2018. "Multi-dual decomposition solution for risk-averse facility location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 70-89.
    8. Nader Azad & Elkafi Hassini, 2019. "A Benders Decomposition Method for Designing Reliable Supply Chain Networks Accounting for Multimitigation Strategies and Demand Losses," Transportation Science, INFORMS, vol. 53(5), pages 1287-1312, September.
    9. Wang, Xin & Lim, Michael K. & Ouyang, Yanfeng, 2015. "Infrastructure deployment under uncertainties and competition: The biofuel industry case," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 1-15.
    10. Zarrinpoor, Naeme & Fallahnezhad, Mohammad Saber & Pishvaee, Mir Saman, 2018. "The design of a reliable and robust hierarchical health service network using an accelerated Benders decomposition algorithm," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1013-1032.
    11. An, Yu & Zeng, Bo & Zhang, Yu & Zhao, Long, 2014. "Reliable p-median facility location problem: two-stage robust models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 64(C), pages 54-72.
    12. An, Shi & Cui, Na & Li, Xiaopeng & Ouyang, Yanfeng, 2013. "Location planning for transit-based evacuation under the risk of service disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 1-16.
    13. Zhang, Yanzi & Diabat, Ali & Zhang, Zhi-Hai, 2021. "Reliable closed-loop supply chain design problem under facility-type-dependent probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 180-209.
    14. Zhang, Ying & Snyder, Lawrence V. & Qi, Mingyao & Miao, Lixin, 2016. "A heterogeneous reliable location model with risk pooling under supply disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 151-178.
    15. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    16. Ahmadi-Javid, Amir & Seddighi, Amir Hossein, 2013. "A location-routing problem with disruption risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 63-82.
    17. An, Shi & Cui, Na & Bai, Yun & Xie, Weijun & Chen, Mingliu & Ouyang, Yanfeng, 2015. "Reliable emergency service facility location under facility disruption, en-route congestion and in-facility queuing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 199-216.
    18. Fahimnia, Behnam & Jabbarzadeh, Armin, 2016. "Marrying supply chain sustainability and resilience: A match made in heaven," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 306-324.
    19. Cui, Jianxun & Zhao, Meng & Li, Xiaopeng & Parsafard, Mohsen & An, Shi, 2016. "Reliable design of an integrated supply chain with expedited shipments under disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 143-163.
    20. Fahimnia, Behnam & Jabbarzadeh, Armin & Sarkis, Joseph, 2018. "Greening versus resilience: A supply chain design perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 129-148.

    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:gam:jeners:v:10:y:2017:i:11:p:1895-:d:119450. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.