Strategic design of biodiesel supply Chains from organic Waste: A robust stochastic model

This research addresses the challenge of increasing fossil fuel consumption by developing an optimization model for designing a biodiesel supply chain network using organic waste. The model focuses on determining the optimal locations for facilities and the logistics of shipments throughout the network to minimize total supply chain costs. Given the inherent uncertainty in demand over time, a robust stochastic optimization approach is employed. The proposed mathematical model is validated using GAMS software. The results indicate that the model effectively determines the optimal facility locations and shipment quantities across multiple periods, thereby minimizing total supply chain costs. Additionally, a case study in South Korea is conducted to perform sensitivity analysis, exploring the impact of various parameters on the objective function. The findings indicate that considering demand uncertainty leads to increased network costs, but it aligns the model more closely with real-world scenarios. This study highlights the potential of the proposed approach to reduce reliance on fossil fuels and mitigate environmental impacts, ultimately emphasizing the importance of innovative and sustainable solutions in energy management.