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Location Optimization Strategies for Corn Production and Distribution towards Sustainable Green Supply Chain

Author

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  • Labiba Noshin Asha

    (Department of Industrial Engineering, University of Arkansas, Fayetteville, AR 72701, USA
    Department of Industrial and Manufacturing Engineering, North Dakota State University, Fargo, ND 58102, USA)

  • Lucy G. Aragon

    (Department of Engineering, Pontificia Universidad Catolica del Peru, San Miguel, Lima 15088, Peru)

  • Arup Dey

    (Department of Computer Science and Engineering Technology, Valdosta State University, Valdosta, GA 31698, USA)

  • Nita Yodo

    (Department of Industrial and Manufacturing Engineering, North Dakota State University, Fargo, ND 58102, USA)

Abstract

Background: The corn supply chain is vital for food security and economic stability regionally and globally. This study integrates sustainable supply chain management with location optimization to address trade-offs from climate change, economic viability, and environmental impact while assuming the constant social obligation inherent in the supply chain structure. Methods: This study employs a mixed-integer programming (MIP) framework to optimize facility locations in North Dakota, including corn production zones as suppliers and ethanol plants as consumers. Primary objectives include cost minimization and greenhouse gas reduction, enabling the prioritization of economic or environmental goals as per organizational strategies and regulations. This approach ultimately maximizes resource utilization by ensuring efficient production and distribution practices. Results: The case study results highlight the optimal selection of 20 out of 30 corn production zones to meet statewide ethanol plant demand efficiently. Using compressed natural gas (CNG) instead of diesel could potentially save USD 2 million annually and cut carbon emissions by up to 1148 thousand tons per year, demonstrating meaningful progress toward economic and environmental sustainability within the supply network. Conclusions: The presented work offers a systematic methodology for designing sustainable supply chains for various agricultural products, aligning with the broader goal of promoting sustainability and resilience for efficient agricultural production and distribution systems.

Suggested Citation

  • Labiba Noshin Asha & Lucy G. Aragon & Arup Dey & Nita Yodo, 2024. "Location Optimization Strategies for Corn Production and Distribution towards Sustainable Green Supply Chain," Logistics, MDPI, vol. 8(3), pages 1-16, August.
    • Handle: RePEc:gam:jlogis:v:8:y:2024:i:3:p:78-:d:1448651
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    References listed on IDEAS

    as
    1. Wiktor Halecki & Dawid Bedla, 2022. "Global Wheat Production and Threats to Supply Chains in a Volatile Climate Change and Energy Crisis," Resources, MDPI, vol. 11(12), pages 1-11, December.
    2. Erfan Babaee Tirkolaee & Alireza Goli & Abbas Mardani, 2023. "A novel two-echelon hierarchical location-allocation-routing optimization for green energy-efficient logistics systems," Annals of Operations Research, Springer, vol. 324(1), pages 795-823, May.
    3. Baker, Mindy L. & Babcock, Bruce A., 2008. "Value maximization from corn fractionation: feed, greenhouse gas reductions, and cointegration of ethanol and livestock," Integration of Agricultural and Energy Systems Conference, February 12-13, 2008, Atlanta, Georgia 48714, Farm Foundation.
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