Analyzing the impact of intermodal-related risk to the design and management of biofuel supply chain

•Present a model that designs reliable logistics network for a biomass supply chain.•Disruption probabilities of hubs are estimated using a probabilistic model.•An accelerated Benders decomposition algorithm is proposed to solve the problem.•Numerical results reveal impact of hub disruption risks on...

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Bibliographic Details
Published in:Transportation research. Part E, Logistics and transportation review Logistics and transportation review, 2014-09, Vol.69, p.122-145
Main Authors: Marufuzzaman, Mohammad, Eksioglu, Sandra D., Li, Xiaopeng, Wang, Jin
Format: Article
Language:English
Subjects:
Benders decomposition
Biodiesel fuels
Biofuels
Densified biomass
Intermodal hub disruption
Intermodal transportation
Mathematical models
Numerical analysis
Rail and barge transportation
Studies
Supply chain design
Supply chain management
Supply chains
Transportation terminals
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Summary:•Present a model that designs reliable logistics network for a biomass supply chain.•Disruption probabilities of hubs are estimated using a probabilistic model.•An accelerated Benders decomposition algorithm is proposed to solve the problem.•Numerical results reveal impact of hub disruption risks on a biomass supply chain. This study presents a mathematical model that designs a reliable multi-modal transportation network for a biofuel supply chain system, where intermodal hubs are subject to site-dependent probabilistic disruptions. The disruption probabilities of intermodal hubs are estimated by using a probabilistic model which is developed using real world data. We developed an accelerated Benders decomposition algorithm to solve this challenging NP-hard problem. Numerical analysis show that the model selects to use intermodal hubs located in areas with low disruption probabilities. In case of a disaster, the reliable solution results in 6.21% savings over the minimum cost solution.
ISSN:1366-5545
1878-5794
DOI:10.1016/j.tre.2014.06.008