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Abstract
As the world strives to transition from fossil fuels to renewable energy, biofuels such as bioethanol are emerging as promising energy sources. As a result, scholars have explored the supply chain of biomass production including harvesting, logistics, and production processes. While most research evaluates single-source supply chains, this study uses a real-world case study in North Dakota to create an integrated multi-sourcing supply chain network for biomass procurement from diverse sources, such as switchgrass and agricultural residues. The mathematical model is structured to address the facility location-allocation. Furthermore, we consider the sustainability of the bioethanol supply chain and formulate an optimization model that minimizes total costs.
Keywords:
Biofuels, Renewable Fuels, Renewable Energy, Bioethanol, Supply Chain Network, Mathematical Optimization.
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1. Introduction
Biofuels have emerged as a potential alternative to fossil fuels as the world seeks to reduce is carbon footprint and minimize its environmental impact. Furthermore, nations seek to not only reduce their carbon footprint but also to secure their energy supply for both strategic and economic reasons [1]. Although both goals seem mutually exclusive due to the outsized role fossil fuels have in meeting global energy demand, the blending of biofuels could address both challenges. Derived from viable lignocellulosic and other organic materials such as crops, algae, and waste, biofuels offer a renewable and sustainable source of energy, contributing to the pursuit of greener and more environmentally friendly energy solutions. The biofuel supply chain, a complex network of processes and activities, plays a pivotal role in harnessing the potential of biofuels and ensuring their seamless integration into existing energy infrastructures. This research reevaluates and improves a previous work's [2] integrated biofuel supply chain network for North Dakota. We used a mixed integer linear programming optimization paradigm and modeled an integrated facility location-allocation problem for the bioethanol supply chain. The main objective of the integrated supply chain network is to minimize the total cost while using all resources to meet all demand. The central focus of this study is to determine how to centralize the biofuel supply chain (BSC) network and configure a conjoined BSC structure in the North Dakota. The resultant strategy in the model could apply to other states with a potential low cost of producing crops...