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A System Dynamics Approach to Comparative Analysis of Biomass Supply Chain Coordination Strategies

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  • Shohre Khoddami

    (Concordia Institute for Information Systems Engineering (CIISE), Concordia University, Montreal, QC H3G 1M8, Canada)

  • Fereshteh Mafakheri

    (Concordia Institute for Information Systems Engineering (CIISE), Concordia University, Montreal, QC H3G 1M8, Canada)

  • Yong Zeng

    (Concordia Institute for Information Systems Engineering (CIISE), Concordia University, Montreal, QC H3G 1M8, Canada)

Abstract

Biomass is an abundant energy source, particularly in Canada, as an alternative or primary source for electricity generation. However, low economy of scale could cause a loss of efficiency for bioenergy adoption in small remote communities. In this sense, coordination among the players could promote the efficiency and profitability of bioenergy supply chains for these communities. There are different coordination strategies with varying impacts on supply chain players’ profit or cost. Therefore, analyzing and comparing them could provide insights on how to decide about the choice of coordination strategy. In doing so, this study considers the coordination strategies of quantity discounts and cost-sharing. The study adopts a system dynamics approach for simulating these coordination scenarios, obtaining their corresponding optimal supply chain decisions, followed by a comparative analysis. For a case study, the study considers multiple suppliers providing biomass for electricity generation in three communities in northern Quebec.

Suggested Citation

  • Shohre Khoddami & Fereshteh Mafakheri & Yong Zeng, 2021. "A System Dynamics Approach to Comparative Analysis of Biomass Supply Chain Coordination Strategies," Energies, MDPI, vol. 14(10), pages 1-35, May.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:10:p:2808-:d:554185
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    References listed on IDEAS

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    Cited by:

    1. Jahani, Hamed & Gholizadeh, Hadi & Hayati, Zahra & Fazlollahtabar, Hamed, 2023. "Investment risk assessment of the biomass-to-energy supply chain using system dynamics," Renewable Energy, Elsevier, vol. 203(C), pages 554-567.
    2. Saghar Sadaghiani & Fereshteh Mafakheri & Zhi Chen, 2023. "Life Cycle Assessment of Bioenergy Production Using Wood Pellets: A Case Study of Remote Communities in Canada," Energies, MDPI, vol. 16(15), pages 1-14, July.

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