Optimal planning of a biofuel supply chain using a multi-criteria optimisation model

Abstract

Biofuels, for reasons such as the high demand of fossil fuels, the need for energy security and concerns over greenhouse gas emissions, have attracted the attention of researchers. Production of biofuels can be costly. On the other hand, the environmental benefits of biofuels depend on the technique they are produced, transported and used. This article studies a mathematical programming model for optimal planning of a biofuel supply chain based on existing facilities. The developed model is based on multi-objective linear programming (MOLP) and considers the economic, environmental and social concerns related to the proposed biofuel supply chain. The model takes into account feedstock availability, biofuel demand, existing biofuel plants and processing technologies. The proposed model is used to evaluate biodiesel production from palm oil and jatropha oil based on existing biodiesel plants in Malaysia. From developed model, the ε-constraint method is applied to solve the optimisation problem. Solving of the proposed model determines the optimal quantity of biomass to be harvested, transportation schedules and the quantity of biodiesel produced at biorefineries as well.