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Energies 2015, 8(2), 1468-1486; doi:10.3390/en8021468

Effects of Disruption Risks on Biorefinery Location Design

1
Center for Advanced Infrastructure and Transportation, Rutgers, the State University of New Jersey, 100 Brett Road, Piscataway, NJ 08854-8058, USA
2
Department of Civil and Environmental Engineering, Mississippi State University, 235L Walker Engineering Building, Starkville, MS 39762-9546, USA
3
Operations Research Department, CSX Transportation, Inc., Jacksonville, FL 32202, USA
4
Department of Civil and Environmental Engineering, University of Illinois at Urbana-Champaign, 205 N. Mathews Ave., Urbana, IL 61801, USA
*
Author to whom correspondence should be addressed.
Academic Editor: Calliope Panoutsou
Received: 27 September 2014 / Accepted: 27 January 2015 / Published: 13 February 2015
(This article belongs to the Special Issue Biomass Resource Efficiency for the Biobased Industries)
View Full-Text   |   Download PDF [617 KB, uploaded 17 March 2015]   |  

Abstract

While ever-growing bio-ethanol production poses considerable challenges to the bioenergy supply chain, the risk of refinery operation disruptions further compromises the efficiency and reliability of the energy supply system. This paper applies discrete and continuous reliable facility location models to the design of reliable bio-ethanol supply chains so that the system can hedge against potential operational disruptions. The discrete model is shown to be suitable for obtaining the exact optimality for small or moderate instances, while the continuous model has superior computational tractability for large-scale applications. The impacts of both site-independent and dependent disruptions (i.e., due to flooding) are analyzed in empirical case study for the State of Illinois (one of the main biomass supply states in the U.S.). The reliable solution is compared with a deterministic solution under the same setting. It is found that refinery disruptions, especially those site-dependent ones, affect both optimal refinery deployment and the supply chain cost. Sensitivity analysis is also conducted to show how refinery failure probability and fixed cost (for building biorefineries) affect optimal supply chain configuration and the total expected system cost. View Full-Text
Keywords: biorefinery location; disruption uncertainty; reliable bio-ethanol supply chain network; biomass transportation; discrete facility location model; continuous approximation; Illinois bio-ethanol industry biorefinery location; disruption uncertainty; reliable bio-ethanol supply chain network; biomass transportation; discrete facility location model; continuous approximation; Illinois bio-ethanol industry
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Bai, Y.; Li, X.; Peng, F.; Wang, X.; Ouyang, Y. Effects of Disruption Risks on Biorefinery Location Design. Energies 2015, 8, 1468-1486.

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