Journal
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Volume 195, Issue -, Pages 27-44Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.ijpe.2017.09.019
Keywords
Bio-fuel supply chain network; Multi-modal facility; Chance-constrained optimization; Sample average approximation
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This study presents a two-stage chance-constrained stochastic programming model that captures the uncertainties due to feedstock seasonality in a bio-fuel supply chain network. The chance-constraint ensures that, with a high probability, Municipal Solid Waste (MSW) will be utilized for bio-fuel production. To solve our proposed optimization model, we use a combined sample average approximation algorithm. We use the state of Mississippi as a testing ground to visualize and validate the modeling results. Our computational experiments reveal some insightful results about the impact of MSW utilization on a bio-fuel supply chain network performance.
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