Designing a hub location model in a bagasse-based bioethanol supply chain network in Iran (case study: Iran sugar industry)

• Published in: Biomass & bioenergy 2019-03, Vol.122, p.238-256
• Main Authors: Saadati, Mahdi, Hosseininezhad, Seyed Javad
• Format: Article
• Language: English
• Subjects: Bagasse; Bagasse-based bio-ethanol; Hub location model; Second-generation bioethanol
• ISSN: 0961-9534; 1873-2909
• DOI: 10.1016/j.biombioe.2019.01.013

Bagasse is one of the most abundant agricultural wastes in the world which has recently been considered as one of the prospective sources of second-generation bioethanol. In order to accelerate the commercialization of bagasse-based bioethanol, designing efficient and effective supply chain is very important aiming to promote using this alternative fuel. In this regard, current study proposes a multi-objective, mixed integer linear programming model to locate hub facilities in bagasse-based bioethanol supply chain network. The proposed methodology is capable of determining the optimum number of locations, capacity of facilities, appropriate transportation mode, material flow between each pair-node and production planning in different periods. To illustrate the application of the developed model, a case study of Iran is conducted and the performance of the developed model is evaluated by using a real world data related to the Iran sugar industry. The results show that due to lack of sufficient feedstock, the bioethanol produced in the proposed supply chain network only covers 67% of accumulated demand resulted from 10 metropolitan areas in Iran. The results analysis also clarify alternative ways of compensating this significant amount of shortage which includes supply through imports or domestic increased production. Provided details regarding each of proposed way can help policy makers in selecting methods for sustainable satisfying bioethanol's demand. •A hub location model in the bagasse - based bioethanol supply chain network was designed.•An MILP model considering economic and environmental objective was proposed based on real data.•The proposed model considered important details about rail and road transportation, such as existing rail network structure, actual road and rail freight tariffs.•Sustainable ways of supplying feedstock needed to produce bioethanol are presented to biofuel policy makers.