IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i10p2808-d554185.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/10/2808/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/14/10/2808/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mafakheri, Fereshteh & Nasiri, Fuzhan, 2014. "Modeling of biomass-to-energy supply chain operations: Applications, challenges and research directions," Energy Policy, Elsevier, vol. 67(C), pages 116-126.
    2. Mark R. Frascatore & Farzad Mahmoodi, 2011. "Cost-sharing contracts and efficiency in a two-stage supply chain," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 6(1), pages 3-19.
    3. Lin Jiang & Yong Wang & Dongmei Liu, 2016. "Logistics cost sharing in supply chains involving a third-party logistics provider," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 24(1), pages 207-230, March.
    4. Mobini, Mahdi & Sowlati, Taraneh & Sokhansanj, Shahab, 2013. "A simulation model for the design and analysis of wood pellet supply chains," Applied Energy, Elsevier, vol. 111(C), pages 1239-1249.
    5. Lingling Wang & Tsunemi Watanabe, 2016. "A Stackelberg Game Theoretic Analysis of Incentive Effects under Perceived Risk for China’s Straw-Based Power Plant Supply Chain," Energies, MDPI, vol. 9(6), pages 1-20, June.
    6. 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.
    7. Azadeh, Ali & Vafa Arani, Hamed, 2016. "Biodiesel supply chain optimization via a hybrid system dynamics-mathematical programming approach," Renewable Energy, Elsevier, vol. 93(C), pages 383-403.
    8. Juanjuan Wu & Jian Zhang & Weiming Yi & Hongzhen Cai & Yang Li & Zhanpeng Su, 2021. "A Game-Theoretic Analysis of Incentive Effects for Agribiomass Power Generation Supply Chain in China," Energies, MDPI, vol. 14(3), pages 1-18, January.
    9. Ahmad, Salman & Mat Tahar, Razman & Muhammad-Sukki, Firdaus & Munir, Abu Bakar & Abdul Rahim, Ruzairi, 2016. "Application of system dynamics approach in electricity sector modelling: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 29-37.
    10. Nicolas Mansuy & Diana Staley & Leila Taheriazad, 2020. "Woody Biomass Mobilization for Bioenergy in a Constrained Landscape: A Case Study from Cold Lake First Nations in Alberta, Canada," Energies, MDPI, vol. 13(23), pages 1-18, November.
    11. Akhtari, Shaghaygh & Sowlati, Taraneh & Griess, Verena C., 2018. "Integrated strategic and tactical optimization of forest-based biomass supply chains to consider medium-term supply and demand variations," Applied Energy, Elsevier, vol. 213(C), pages 626-638.
    12. Nasiri, Fuzhan & Zaccour, Georges, 2009. "An exploratory game-theoretic analysis of biomass electricity generation supply chain," Energy Policy, Elsevier, vol. 37(11), pages 4514-4522, November.
    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. 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.

    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. Ghadge, Abhijeet & van der Werf, Sjoerd & Er Kara, Merve & Goswami, Mohit & Kumar, Pankaj & Bourlakis, Michael, 2020. "Modelling the impact of climate change risk on bioethanol supply chains," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    2. Juanjuan Wu & Jian Zhang & Weiming Yi & Hongzhen Cai & Yang Li & Zhanpeng Su, 2021. "A Game-Theoretic Analysis of Incentive Effects for Agribiomass Power Generation Supply Chain in China," Energies, MDPI, vol. 14(3), pages 1-18, January.
    3. Bernardine Chigozie Chidozie & Ana Luísa Ramos & José Vasconcelos Ferreira & Luís Pinto Ferreira, 2023. "Residual Agroforestry Biomass Supply Chain Simulation Insights and Directions: A Systematic Literature Review," Sustainability, MDPI, vol. 15(13), pages 1-16, June.
    4. 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).
    5. 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.
    6. Schipfer, Fabian & Kranzl, Lukas, 2019. "Techno-economic evaluation of biomass-to-end-use chains based on densified bioenergy carriers (dBECs)," Applied Energy, Elsevier, vol. 239(C), pages 715-724.
    7. Md Abu Helal & Nathaniel Anderson & Yu Wei & Matthew Thompson, 2023. "A Review of Biomass-to-Bioenergy Supply Chain Research Using Bibliometric Analysis and Visualization," Energies, MDPI, vol. 16(3), pages 1-32, January.
    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. Vitale, Ignacio & Dondo, Rodolfo G. & González, Matías & Cóccola, Mariana E., 2022. "Modelling and optimization of material flows in the wood pellet supply chain," Applied Energy, Elsevier, vol. 313(C).
    10. Tang, J.P. & Lam, H.L. & Abdul Aziz, M.K. & Morad, N.A., 2017. "Palm biomass strategic resource managment – A competitive game analysis," Energy, Elsevier, vol. 118(C), pages 456-463.
    11. Wen, Wen & Zhang, Qin, 2015. "A design of straw acquisition mode for China's straw power plant based on supply chain coordination," Renewable Energy, Elsevier, vol. 76(C), pages 369-374.
    12. 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.
    13. 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).
    14. Prinz, Robert & Väätäinen, Kari & Laitila, Juha & Sikanen, Lauri & Asikainen, Antti, 2019. "Analysis of energy efficiency of forest chip supply systems using discrete-event simulation," Applied Energy, Elsevier, vol. 235(C), pages 1369-1380.
    15. 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.
    16. 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.
    17. 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.
    18. Mohd F. M. A. Zamri & Jassinnee Milano & Abd H. Shamsuddin & Mohd E. M. Roslan & Siti F. Salleh & Adlansyah A. Rahman & Raihana Bahru & Islam M. R. Fattah & T. M. Indra Mahlia, 2022. "An overview of palm oil biomass for power generation sector decarbonization in Malaysia: Progress, challenges, and prospects," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(4), July.
    19. Ramos-Hernández, Rocío & Sánchez-Ramírez, Cuauhtémoc & Mota-López, Dulce Rocio & Sandoval-Salas, Fabiola & García-Alcaraz, Jorge Luis, 2021. "Evaluation of bioenergy potential from coffee pulp trough System Dynamics," Renewable Energy, Elsevier, vol. 165(P1), pages 863-877.
    20. Sarker, Bhaba R. & Wu, Bingqing & Paudel, Krishna P., 2019. "Modeling and optimization of a supply chain of renewable biomass and biogas: Processing plant location," Applied Energy, Elsevier, vol. 239(C), pages 343-355.

    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:14:y:2021:i:10:p:2808-:d:554185. 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.