A stochastic programming approach toward optimal design and planning of an integrated green biodiesel supply chain network under uncertainty: A case study

Biodiesel has recently attracted much interest as an appropriate alternative for the fossil diesel which is mostly consumed in the transportation sector. Meanwhile, Jatropha Curcas L. has emerged as one of the most promising biofuel feedstocks due largely to its salient features such as compatibilit...

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Published in:Energy (Oxford) Vol. 156; pp. 661 - 687
Main Authors: Ghelichi, Zabih, Saidi-Mehrabad, Mohammad, Pishvaee, Mir Saman
Format: Journal Article
Language:English
Published: Elsevier Ltd 01.08.2018
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ISSN:0360-5442
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Abstract Biodiesel has recently attracted much interest as an appropriate alternative for the fossil diesel which is mostly consumed in the transportation sector. Meanwhile, Jatropha Curcas L. has emerged as one of the most promising biofuel feedstocks due largely to its salient features such as compatibility with arid and semi-arid lands. In this regard, this paper unveils a two-stage stochastic programming model for the design of an integrated green biodiesel supply chain network from Jatropha Curcas feedstocks. The concerned biodiesel supply chain design is an environmentally friendly mixed-integer linear programming, multi-period and multi-product model. Furthermore, a flexible stochastic programming approach is developed and applied to the supply chain network model. This proposed approach is indeed an extension of a two-stage scenario-based stochastic programming approach which incorporates min-max relative regret in a soft worst-case framework. Given the natural variability of long-term decision-making, fuel demand and Jatropha Curcas trees yielding are hemmed in by uncertainty in this model. The performance of the proposed framework and biodiesel supply chain network design is corroborated through ten realizations and a myriad of various analyses in a real case study of Iran. The derived results and their analyses acknowledge the efficiency and applicability of the model. •An integrated biodiesel supply chain network design under uncertainty is presented.•Environmental friendly considerations are incorporated into the design.•Jatropha Curcas L., an inedible crop, is exploited for biodiesel production.•A two-stage stochastic programing is extended to address the uncertainties.•Soft-worst case framework is applied to the min-max relative regret.
AbstractList Biodiesel has recently attracted much interest as an appropriate alternative for the fossil diesel which is mostly consumed in the transportation sector. Meanwhile, Jatropha Curcas L. has emerged as one of the most promising biofuel feedstocks due largely to its salient features such as compatibility with arid and semi-arid lands. In this regard, this paper unveils a two-stage stochastic programming model for the design of an integrated green biodiesel supply chain network from Jatropha Curcas feedstocks. The concerned biodiesel supply chain design is an environmentally friendly mixed-integer linear programming, multi-period and multi-product model. Furthermore, a flexible stochastic programming approach is developed and applied to the supply chain network model. This proposed approach is indeed an extension of a two-stage scenario-based stochastic programming approach which incorporates min-max relative regret in a soft worst-case framework. Given the natural variability of long-term decision-making, fuel demand and Jatropha Curcas trees yielding are hemmed in by uncertainty in this model. The performance of the proposed framework and biodiesel supply chain network design is corroborated through ten realizations and a myriad of various analyses in a real case study of Iran. The derived results and their analyses acknowledge the efficiency and applicability of the model. •An integrated biodiesel supply chain network design under uncertainty is presented.•Environmental friendly considerations are incorporated into the design.•Jatropha Curcas L., an inedible crop, is exploited for biodiesel production.•A two-stage stochastic programing is extended to address the uncertainties.•Soft-worst case framework is applied to the min-max relative regret.
Biodiesel has recently attracted much interest as an appropriate alternative for the fossil diesel which is mostly consumed in the transportation sector. Meanwhile, Jatropha Curcas L. has emerged as one of the most promising biofuel feedstocks due largely to its salient features such as compatibility with arid and semi-arid lands. In this regard, this paper unveils a two-stage stochastic programming model for the design of an integrated green biodiesel supply chain network from Jatropha Curcas feedstocks. The concerned biodiesel supply chain design is an environmentally friendly mixed-integer linear programming, multi-period and multi-product model. Furthermore, a flexible stochastic programming approach is developed and applied to the supply chain network model. This proposed approach is indeed an extension of a two-stage scenario-based stochastic programming approach which incorporates min-max relative regret in a soft worst-case framework. Given the natural variability of long-term decision-making, fuel demand and Jatropha Curcas trees yielding are hemmed in by uncertainty in this model. The performance of the proposed framework and biodiesel supply chain network design is corroborated through ten realizations and a myriad of various analyses in a real case study of Iran. The derived results and their analyses acknowledge the efficiency and applicability of the model.
Author Ghelichi, Zabih
Pishvaee, Mir Saman
Saidi-Mehrabad, Mohammad
Author_xml – sequence: 1
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  surname: Ghelichi
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  givenname: Mohammad
  surname: Saidi-Mehrabad
  fullname: Saidi-Mehrabad, Mohammad
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  givenname: Mir Saman
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  surname: Pishvaee
  fullname: Pishvaee, Mir Saman
  email: pishvaee@iust.ac.ir
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Keywords Maximum relative regret
Greenhouse gas emission
Jatropha curcas L
Biodiesel supply chain network
Two-stage stochastic programming
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Snippet Biodiesel has recently attracted much interest as an appropriate alternative for the fossil diesel which is mostly consumed in the transportation sector....
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SubjectTerms arid lands
biodiesel
Biodiesel supply chain network
case studies
decision making
feedstocks
fossil fuels
Greenhouse gas emission
Iran
Jatropha curcas
Jatropha curcas L
linear programming
Maximum relative regret
planning
supply chain
transportation
Two-stage stochastic programming
uncertainty
Title A stochastic programming approach toward optimal design and planning of an integrated green biodiesel supply chain network under uncertainty: A case study
URI https://dx.doi.org/10.1016/j.energy.2018.05.103
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