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Designing a Reliable and Congested Multi-Modal Facility Location Problem for Biofuel Supply Chain Network

Author

Listed:
  • Sushil Poudel

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, MS 39759, USA)

  • Mohammad Marufuzzaman

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, MS 39759, USA)

  • Md Abdul Quddus

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, MS 39759, USA)

  • Sudipta Chowdhury

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, MS 39759, USA)

  • Linkan Bian

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, MS 39759, USA)

  • Brian Smith

    (Department of Industrial and Systems Engineering, Mississippi State University, Starkville, MS 39759, USA)

Abstract

This study presents a mathematical model that designs a reliable multi-modal transportation network for a biofuel supply chain system while site-dependent facility failure and congestion are taken into consideration. The proposed model locates the multi-modal facilities and biorefineries and determines the optimal production, storage, and routing plans in such a way that the overall system cost is minimized. We propose a hybrid Constraint generation-based Rolling horizon algorithm to solve this challenging NP -hard problem. The performance of this algorithm is tested in a example case study with numerical analysis showing that the hybrid algorithm can find near-optimal solutions to large-scale problem instances in a reasonable amount of time. Results indicate that the effect of congestion reduces the usage of multi-modal facilities in the biofuel supply chain network while bio-refineries and multi-modal facilities tend to move away from coastal areas when disruption probabilities are taken into consideration.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:7:p:1682-:d:154856
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    References listed on IDEAS

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    4. 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).

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