Biofuel supply chain network design under stochastic demand considering environmental and social impacts and hazardous material transportation risk

The current research designs a biofuel supply chain network based on uncertain demand. This network combines economic, environmental, social, and transportation risk goals. A new multi-objective mixed-integer linear programming model has been developed. It includes three biomass types: second-generation Jatropha, livestock and agricultural waste, and third-generation microalgae. The model optimizes biodiesel and electricity production using transesterification and anaerobic digestion. It considers supplier discounts and uncertain demand using chance-constrained programming. According to the results, the least amount of energy is produced when the environmental goal is given the most importance. It will be less expensive to invest in social dimensions than in other goals, except for the economic one. The situation where energy production is prioritized has the highest costs and the biggest carbon emissions. The smallest social effects happen when reducing the risk of carrying hazardous materials is preferred. Overall, the largest deviation from all objectives occurs when the first objective function (energy) is prioritized, and the lowest distance to the optimal value of all objective functions occurs when reducing the transportation risk of hazardous materials has a higher weight and importance. Therefore, managers can get more advantages by focusing on reducing transportation risks and investing in it.