Optimization of the Residual Biomass Supply Chain: Process Characterization and Cost Analysis
Abstract
:1. Introduction
- Understanding the inherent complexities of the residual biomass supply chain and identifying efficient and sustainable optimization strategies.
- Emphasizing the use of optimization techniques, such as linear programming, genetic algorithms, and tabu search, and their potential to enhance the efficiency and sustainability of this logistical process.
- Applying these tools to minimize operational costs in an integrated manner.
- Examining the various constraints and challenges that may emerge in this context, such as biomass quality and availability, environmental conditions, legal and policy constraints, and stakeholder needs.
- Providing a comprehensive understanding of this subject, which can inform and guide future decisions and practices in the field of residual biomass collection and recovery.
2. Organization of the Work
- Section 1, the Introduction, provides an overview of the topic and sets the context for the subsequent discussions. It outlines the importance of understanding and optimizing the logistics of residual biomass collection, and the potential benefits that can be derived from such efforts. The introduction also highlights the research gap that this article aims to address.
- Section 2, Organization of the Work, outlines the structure of the article and provides a roadmap for the reader. It describes the sequence of topics that will be discussed and explains how each section contributes to the overall objective of the article.
- Section 3, Literature Review, presents analysis of previous works related to the subject of this research and outlines the contributions of this manuscript comparatively with the existing literature.
- Section 4, Modeling the Costs Associated with the Logistics of Residual Biomass Collection, is organized as presented in Figure 1. It begins with the Definition of Costing Parameters, where the various factors that contribute to the cost of logistics are identified and defined. This is followed by the Establishment of Detailed Criteria, where these parameters are further refined and categorized. The section then moves on to Model Tuning and Approximation to Reality, which is further divided into five subsections. The Simplified Model provides a basic understanding of the cost structure, while the Model of Approximation to Reality introduces more complexity and realism. The Approximations and Adaptability subsection discusses the flexibility of the model and its ability to adapt to different scenarios. The Variations Associated with Specific Parameters of Residual Biomass subsection examines how changes in the characteristics of the biomass can affect the costs. Finally, the Calculation Model through Weighting of Variables presents a method for quantifying the costs based on the defined parameters and criteria.
- Section 5, Optimization Models for the Collection Process, presents different models for optimizing the logistics of residual biomass collection. It starts with a Linear Approach for the Characterization of the Supply Chain, which provides a simplified model for understanding the logistics process. This is followed by Complex Models, which introduce more sophisticated methods for optimizing the collection process.
- Section 6, Conclusions, summarizes the key findings of the article. It highlights the implications of the cost models and optimization methods discussed in the previous sections and suggests directions for future research. This section also reiterates the importance of understanding and optimizing the logistics of residual biomass collection, and the potential benefits that can be derived from such efforts.
3. Literature Review
4. Modeling the Costs Associated with the Logistics of Residual Biomass Collection
4.1. Definition of Costing Parameters
- Cutting cost (Cc): may include labor cost, equipment cost, and equipment maintenance cost, and can also be influenced by factors such as the type of biomass and site conditions.
- Cleaning cost (Cl): the cost associated with preparing the biomass for transportation. This may include debris removal, biomass separation from other materials, and the selection of distinct parts that constitute this biomass, such as the separation of husks.
- Recollection cost (Cr): the cost of collecting the biomass and preparing it for transportation, which may include biomass compaction (baling) and loading it onto transport vehicles or using more traditional methods (now making a comeback), such as modern animal traction.
- Loading cost (Cca): the cost of loading the biomass onto the transport vehicle, which can vary depending on the type of vehicle used and the amount of biomass that needs to be loaded.
- Transportation cost (Ct): the cost of moving the biomass from the cutting site to the final processing site, which may include the cost of fuel, vehicle wear and tear, and time spent in transportation.
4.2. Establishment of Detailed Criteria
- Biomass acquisition cost (Ca): the cost of acquiring biomass and may depend on a variety of factors, including the type of biomass and its location and spatial distribution.
- Waste management cost (Cd): the cost associated with managing any waste produced during the process of cutting, cleaning, reloading, loading, and transporting biomass.
- Insurance coverage cost (Ci): the cost of insuring the process, including equipment insurance and insurance for liability, environmental and work accidents, among others.
- Permit/license cost (Cp): the cost associated with obtaining the necessary permits and licenses to carry out the process.
- Indirect cost (Cin): a general cost that may include things such as administration, supervision, facility maintenance, and so on.
- Unloading cost (Cde): the cost of unloading biomass at the intermediate location.
- Shredding cost (Cdt): the cost of shredding biomass at the intermediate location.
- Reloading cost (Crc): the cost of reloading biomass onto the transport vehicle after shredding.
- Additional transportation cost (Cta): the cost of transporting biomass from the intermediate location to the final processing location.
4.3. Model Tuning and Approximation to Reality
4.3.1. Simplified Model
- Cutting cost (Cc): this cost can be influenced by factors such as labor cost (Cmo); labor productivity (Pmo), which may depend on workers’ education and experience; equipment cost (Pe), which may vary depending on the type and quality of the equipment; maintenance cost (Me); equipment lifespan (Le); and site conditions, which can affect cutting speed.
- Cleaning cost (Cl): this cost can be influenced by factors similar to those of the cutting cost, such as labor productivity and equipment cost. It may also depend on the type of biomass and site conditions, among other factors.
- Reharvesting cost (Cr): this cost can be influenced by factors such as biomass size and shape, labor productivity, and equipment cost. For example, reharvesting larger biomass pieces may be more expensive than reharvesting smaller pieces, as it requires more effort from the equipment, resulting in increased fuel consumption.
- Loading cost (Cca): this cost may depend on the type of vehicle used for transportation, the quantity of biomass that needs to be loaded, and labor productivity.
- Transportation cost (Ct): this cost may depend on factors such as the distance to the final processing location (Dpf), the type of vehicle used, fuel cost (Ccomb), and the time required for travel (Tdesl).
4.3.2. Model of Approximation to Reality
- Cutting cost (Cc): this cost can be represented as the sum of labor cost, equipment cost, and equipment maintenance cost. It can be assumed that the labor cost depends on the hourly rate (H) and the time required to cut the biomass (Tc). The equipment cost can be the price of the equipment (Pe) divided by its useful life (Le), and the equipment maintenance cost (Me) can be considered as a percentage of the equipment cost. Therefore, the formula can be presented as follows:
- Cleaning cost (Cl): this cost can be represented similarly to the cutting cost, assuming that the time required for cleaning is Tl and the cleaning equipment has its own acquisition value (Pl), lifespan (Ll), and maintenance cost (Ml), as presented in the following equation:
- Reharvesting cost (Cr): this cost can be influenced by the dimension and shape of the available biomass (Sb) if the amount of time required for recharging varies depending on the size of the pieces to be collected and processed. The recharging equipment has its own acquisition cost (Pr), useful life (Lr), and maintenance cost (Mr):
- Loading cost (Cca): this cost can be influenced by the biomass quantity (Qb) available if the time required for loading increases with the biomass quantity. The loading equipment also has its own acquisition value (Pca), useful life (Lca), and maintenance cost (Mca).
- Transportation cost (Ct): this cost may depend on the distance to the final processing location (D), the fuel cost per kilometer (F), and the transit time (Tt). The vehicle has its own acquisition cost (Pv), useful life (Lv), and maintenance cost (Mv):
4.3.3. Approximations and Adaptability
- Biomass acquisition cost (Ca): this cost may depend on the price per unit of biomass (Pb) and the quantity of biomass acquired (Qb).
- Cost associated with waste management (Cd): this cost may depend on the quantity of waste produced (Qr), which can be a proportion of the acquired biomass quantity and the cost per unit of waste to be managed (Pr):
- Insurance cost (Ci): this cost can correspond to a fixed rate or may depend on the value of the insured assets (Va) and the insurance rate (I):
- Cost associated with obtaining permits/licenses (Cp): this cost may depend on the number of permits or licenses required (Np) and the cost per permit or license (Pp):
- Indirect costs (Cin): this is a general cost that may include items such as administration, supervision, and facility maintenance. It can be difficult to model mathematically, but it can be considered as a percentage (α) of the total direct cost (Cdirect), which is the sum of cutting, cleaning, reloading, loading, and transportation costs.
- Unloading cost (Cde): this cost may depend on the quantity of biomass to be unloaded (Qde), the time required for unloading (Tde), and the labor cost (H). Additionally, there may be an equipment cost associated with unloading.
- Shredding cost (Cdt): this cost may depend on the dimensions and shape of the biomass (Sdt), the time required for shredding (Tdt), and the labor cost (H). Additionally, there may be an equipment cost associated with shredding.
- Reharvesting cost (Crc): this cost may be similar to the loading cost, but it may depend on the quantity (volume) of biomass after shredding (Qrc), the time required for recharging (Trc), and the labor cost (H). Additionally, there may be equipment costs associated with recharging.
- Additional transportation cost (Cta): this cost may depend on the additional distance to the final processing location (Da), the cost of fuel per kilometer (F), and the time for the additional displacement (Tta). The vehicle has its own acquisition cost (Pv), useful life (Lv), and maintenance cost (Mv).
4.3.4. Variations Associated with Specific Parameters of Residual Biomass
- Moisture: biomass with high moisture content may be less valuable because moisture reduces its calorific value and increases transportation costs (as the water is also being transported). Therefore, a depreciation factor for moisture (dH) can be introduced, which decreases the price of biomass as moisture content increases.
- Inert percentage: biomass with a high percentage of inert materials may be less valuable because inert materials do not contribute to the energy value and can even cause damage to processing equipment, in addition to significantly contributing to the amount of ash produced if thermochemical conversion is the valorization pathway. Therefore, a depreciation factor for inert materials (dI) can be introduced, which decreases the price of biomass as the percentage of inert materials increases.
- Spatial dispersion: biomass that is more scattered may be less valuable because it becomes more expensive to collect and transport. Therefore, a depreciation factor for spatial dispersion (dD) can be introduced, which decreases the price of biomass as spatial dispersion increases.
- If H ≤ H1, then dH = 0 (there is no depreciation).
- If H1< H ≤ H2, then (linear depreciation with slope a).
- If H > H2, then (linear depreciation with slope b and a displacement to ensure the function is continuous).
4.3.5. Calculation Model through Weighting of Variables
- Measurement errors: if the data used to calculate individual costs (Cc, Cl, …) are measurements, they may contain measurement errors.
- Parameter variation: the model parameters (e.g., weights w1, w2, …) can vary over time and/or space, or across different biomass supply systems.
- Cost variation: individual costs (Cc, Cl, …) can vary over time and/or space, or across different biomass supply systems.
- Model simplifications: the model may incorporate various simplifications (e.g., assuming costs are additive and that the effects of different variables are independent). These simplifications may not be exact, leading to errors in the estimation of total cost.
- Error propagation: if there is an estimation of the error associated with each individual cost (e.g., due to measurement errors), one can utilize the theory of error propagation to calculate the margin of error in the total cost.
- Sensitivity analysis: if there is an understanding of how the model parameters (the weights w1, w2, …) can vary, a sensitivity analysis can be conducted to observe how the variation in these parameters affects the total cost.
- Simulation: if there is a probabilistic model of the biomass supply system (e.g., if the variation in costs and parameters has been modeled as random variables), simulation techniques such as the Monte Carlo method can be used to estimate the margin of error.
- Experience and industry knowledge: weights can be determined based on practical experience and industry knowledge. For example, if it is known that transportation costs are significantly higher than other operational costs, a higher weight can be assigned to transportation costs.
- Expert consultation: experts familiar with biomass production and transportation can be consulted. They can provide valuable insights into which costs are generally more significant.
- Economic analysis: an economic analysis can be conducted to determine the relative importance of each cost. For instance, evaluating how changes in each cost affect the total production cost or operational profitability.
- Sensitivity analysis: sensitivity analysis can be used to determine the impact of changes in each variable on the total cost. Variables that have the greatest impact on the total cost when changed can be assigned higher weights.
- Historical data analysis: if historical data on biomass production and transportation costs are available, statistical analyses can be used to determine which costs have had the greatest impact on the total cost over time.
- Optimization: in some cases, weights can be determined using optimization techniques. For example, defining an objective function (such as minimizing total cost or maximizing profit) and using optimization techniques to find the weights that optimize that function.
5. Optimization Models for the Collection Process
5.1. Linear Approach for the Characterization of the Supply Chain
- Flexibility: LP allows for the inclusion of a variety of operational constraints, such as capacity limits, demand requirements, and time constraints.
- Computational efficiency: there already exist efficient algorithms (such as the simplex method) for solving LP problems.
- Interpretability: the solutions to an LP problem are easy to interpret. The optimal solution indicates the collection and transportation strategy that minimizes total costs, and the shadow prices (or reduced marginal costs) associated with constraints provide information about the method of minimizing those constraints.
- Sensitivity and scenario analysis: LP allows for sensitivity analysis to understand the impact of changes in model parameters (e.g., transportation costs, biomass availability) on the optimized solution. It also enables scenario analysis to explore alternative strategies under different assumptions or future conditions.
- The amount of biomass collected at each location must not exceed the available quantity (for all i).
- The total amount of biomass collected must meet the processing facility’s (demand) needs ( for all i).
- The biomass quantities to be collected cannot be negative ( for all i).
- for all , where D is the search at the processing location;
- for all i, where qi is the quantity available at location i;
- for all i, where C is the vehicle’s carrying capacity;
- for all i, ensuring that the collected quantity cannot be negative.
- for all , where D is the demand at the processing location;
- for all i, where qi is the quantity available at location i;
- for all i, where C is the vehicle’s carrying capacity and y is a binary variable (0 or 1);
- for all i, ensuring that the collected quantity cannot be negative;
- y is a binary variable.
5.2. Complex Models
6. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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% Humidity (H) | Depreciation Rate (dH) |
---|---|
0 | 0.00 |
10 | 0.00 |
20 | 0.05 |
30 | 0.10 |
40 | 0.15 |
50 | 0.25 |
60 | 0.35 |
70 | 0.45 |
80 | 0.55 |
90 | 0.65 |
100 | 1.00 |
A | B | C | D | E | |
---|---|---|---|---|---|
A | 0 | 10 | 15 | 20 | 25 |
B | 10 | 0 | 5 | 15 | 20 |
C | 15 | 5 | 0 | 10 | 15 |
D | 20 | 15 | 10 | 0 | 5 |
E | 25 | 20 | 15 | 5 | 0 |
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Nunes, L.J.R.; Silva, S. Optimization of the Residual Biomass Supply Chain: Process Characterization and Cost Analysis. Logistics 2023, 7, 48. https://doi.org/10.3390/logistics7030048
Nunes LJR, Silva S. Optimization of the Residual Biomass Supply Chain: Process Characterization and Cost Analysis. Logistics. 2023; 7(3):48. https://doi.org/10.3390/logistics7030048
Chicago/Turabian StyleNunes, Leonel J. R., and Sandra Silva. 2023. "Optimization of the Residual Biomass Supply Chain: Process Characterization and Cost Analysis" Logistics 7, no. 3: 48. https://doi.org/10.3390/logistics7030048
APA StyleNunes, L. J. R., & Silva, S. (2023). Optimization of the Residual Biomass Supply Chain: Process Characterization and Cost Analysis. Logistics, 7(3), 48. https://doi.org/10.3390/logistics7030048