Published Dec 14, 2017



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Rafael Guillermo García-Cáceres, PhD http://orcid.org/0000-0003-0902-1038

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Abstract

Objective: A stochastic bi-objective Mixed Integer Problem (MIP) model of biodiesel supply chain networks is presented, ultimately intended to support strategic decisions of stakeholders. Materials and Methods: The bi-objective MIP model aims to minimize the total cost and environmental impact of five chain echelons, taking into consideration the following constraints: economies of scale, location of facilities, production capacity, raw material supply, product demand, bill of materials and mass balance. The solution procedure resorts to chance constraints, valid constraints and the ε-constraint method. Results and Discussion: The CPU times for the optimal solution of the problem instances show very good values. Computational experiments allowed assessing the performance of the solution procedure. Conclusion: The current approach to the modeling of the biodiesel supply chain may serve as the basis of future similar works and associated solution procedures, thus facilitating decision-making at different supply chain stages. The approach fosters the development of new solution approaches such as adequate acceleration; heuristics and meta-heuristics; branch and cut methods;and Lagrangian, Benders and Danzing-Wolfe decompositions. These new approaches are intended to allow comparisons in terms of computational performance level, optimality gap, CPU time and memory usage.

Keywords

Biodiesel, oil palm, logistics, supply chain, mathematical programming, optimizationBiodiesel, aceite de palma, logística, cadena de abastecimiento, programación matemática, optimización

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How to Cite
García-Cáceres, R. G. (2017). Strategic planning of biodiesel supply chain. Ingenieria Y Universidad, 22(1), 77 - 95. https://doi.org/10.11144/Javeriana.iyu22-1.spbs
Section
Industrial and systems engineering