Biomass feedstock logistics with mobile equipment

In this paper, we consider a biomass feedstock logistics supply chain (BFLSC) problem with explicit consideration of mobile equipment used for loading and unloading biomass at storage locations. Instead of modelling this feature directly into the formulation, we account for the transportation of equipment implicitly, resulting in a two-index formulation as compared to a three-index formulation. The Benders decomposition algorithm (BDA) that we develop for the solution of the problem further exploits this feature of our formulation. It generates solutions of the desired accuracy (optimality gap). We also propose two fast heuristic solution methods, both of which exploit the decision hierarchy of the problem. Our computational investigation reveals the efficacy of the proposed methods. Moreover, our experimental studies based on real-life cost parameters indicate that a reduction in cost can be achieved by mobilising loadout equipment in a BFLSC instead of locating it permanently at storage locations. The benefits accrued vary with system configuration, congestion level, loadout and permanent equipment costs, and building and routing costs.