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Designing a maritime supply chain for distribution of wood pellets: a case study from southern Norway

Author

Listed:
  • Kristian Andersen

    (Norwegian University of Science and Technology)

  • Henrik Andersson

    (Norwegian University of Science and Technology)

  • Marielle Christiansen

    (Norwegian University of Science and Technology)

  • Roar Grønhaug

    (ENOVA SF)

  • Aslanbek Sjamsutdinov

    (Norwegian University of Science and Technology)

Abstract

Heat is traditionally produced from non-renewable energy sources. Some of this energy could be produced from renewable energy sources such as wood pellets. In Norway, pellets are today transported by trucks, but it is not profitable to use the road-based transportation network for long distances. Therefore, the Norwegian consumption of pellets is low. The purpose of this paper is to present a feasibility study for evaluating if a maritime supply chain for distribution of pellets along the Norwegian coast is economically viable. A mixed integer programming model is developed as a basis for decision support, and the model utilizes the structure of the geographical network resulting in a novel and innovative formulation of the problem. The main findings are that the operating profit margin is around 8% for the supply chain and that the model is flexible and able to design maritime distribution chains that are suitable for different levels of demand.

Suggested Citation

  • Kristian Andersen & Henrik Andersson & Marielle Christiansen & Roar Grønhaug & Aslanbek Sjamsutdinov, 2017. "Designing a maritime supply chain for distribution of wood pellets: a case study from southern Norway," Flexible Services and Manufacturing Journal, Springer, vol. 29(3), pages 572-600, December.
    • Handle: RePEc:spr:flsman:v:29:y:2017:i:3:d:10.1007_s10696-016-9269-z
    DOI: 10.1007/s10696-016-9269-z
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    References listed on IDEAS

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    Cited by:

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