(226g) Robust Optimization of Integrated Biodiesel and Petroleum Supply Chain Considering Seasonality and Risk Management Under Carbon Policy

With the continuous development of human society, the demand for energy keeps growing. For the sustainable development of human living environment, it is necessary to reduce the use of fossil fuel, and consider biofuel with low carbon dioxide emission instead. This study proposes a mixed integer model for optimizing an integrated biodiesel and petroleum supply chain in conjunction with carbon policies to control the amount of carbon emitted along supply chain, from both production and transportation activities, and consider both economic and environmental prospective. To deal with the complexity and uncertainty of the actual biodiesel supply chain, the supply variance of biomass is subdivided into 12-month subintervals, and a robust optimization method is adopted considering the uncertainty of demand. To improve the anti-risk ability of the supply chain network, the risk management of the warehousing link is considered. The goal is to minimize annual operating expenses while keeping carbon emissions as low as possible. A real case located in Illinois, USA is considered. The optimal operating conditions for the supply chain are found. The results show this model can reduce the annual cost while ensuring the least carbon emissions.