Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions

While biomass has been recognized as an important renewable energy source which has a range of positive impacts on the economy, environment, and society, the existence of feedstock seasonality and risk of service disruptions at collection facilities potentially compromises the efficiency and reliabi...

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Main Authors: Zhixue Liu, Shukun Wang, Yanfeng Ouyang
Format: Article
Language:English
Published: MDPI AG 2017-11-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/10/11/1895
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author Zhixue Liu
Shukun Wang
Yanfeng Ouyang
author_facet Zhixue Liu
Shukun Wang
Yanfeng Ouyang
author_sort Zhixue Liu
collection DOAJ
description While biomass has been recognized as an important renewable energy source which has a range of positive impacts on the economy, environment, and society, the existence of feedstock seasonality and risk of service disruptions at collection facilities potentially compromises the efficiency and reliability of the energy supply system. In this paper, we consider reliable supply chain design for biomass collection against feedstock seasonality and time-varying disruption risks. We optimize facility location, inventory, biomass quantity, and shipment decisions in a multi-period planning horizon setting. A real-world case in Hubei, China is studied to offer managerial insights. Our computational results show that: (1) the disruption risk significantly affects both the optimal facility locations and the supply chain cost; (2) no matter how the failure probability changes, setting backup facilities can significantly decrease the total cost; and (3) the feedstock seasonality does not affect locations of the collection facilities, but it affects the allocations of collection facilities and brings higher inventory cost for the biomass supply chain.
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spelling doaj.art-19df4288ffbc4e8786d5120536052daa2022-12-22T04:00:35ZengMDPI AGEnergies1996-10732017-11-011011189510.3390/en10111895en10111895Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility DisruptionsZhixue Liu0Shukun Wang1Yanfeng Ouyang2School of Management, Huazhong University of Science and Technology, Wuhan 403374, ChinaSchool of Management, Huazhong University of Science and Technology, Wuhan 403374, ChinaDepartment of Civil and Environmental Engineering, University of Illinois at Urbana-Champaign, Urbana, IL 61801, USAWhile biomass has been recognized as an important renewable energy source which has a range of positive impacts on the economy, environment, and society, the existence of feedstock seasonality and risk of service disruptions at collection facilities potentially compromises the efficiency and reliability of the energy supply system. In this paper, we consider reliable supply chain design for biomass collection against feedstock seasonality and time-varying disruption risks. We optimize facility location, inventory, biomass quantity, and shipment decisions in a multi-period planning horizon setting. A real-world case in Hubei, China is studied to offer managerial insights. Our computational results show that: (1) the disruption risk significantly affects both the optimal facility locations and the supply chain cost; (2) no matter how the failure probability changes, setting backup facilities can significantly decrease the total cost; and (3) the feedstock seasonality does not affect locations of the collection facilities, but it affects the allocations of collection facilities and brings higher inventory cost for the biomass supply chain.https://www.mdpi.com/1996-1073/10/11/1895biomasssupply chaininventoryfacility locationseasonalitydisruption risk
spellingShingle Zhixue Liu
Shukun Wang
Yanfeng Ouyang
Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions
Energies
biomass
supply chain
inventory
facility location
seasonality
disruption risk
title Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions
title_full Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions
title_fullStr Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions
title_full_unstemmed Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions
title_short Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions
title_sort reliable biomass supply chain design under feedstock seasonality and probabilistic facility disruptions
topic biomass
supply chain
inventory
facility location
seasonality
disruption risk
url https://www.mdpi.com/1996-1073/10/11/1895
work_keys_str_mv AT zhixueliu reliablebiomasssupplychaindesignunderfeedstockseasonalityandprobabilisticfacilitydisruptions
AT shukunwang reliablebiomasssupplychaindesignunderfeedstockseasonalityandprobabilisticfacilitydisruptions
AT yanfengouyang reliablebiomasssupplychaindesignunderfeedstockseasonalityandprobabilisticfacilitydisruptions