A Superstructure-Based Modeling Approach for Supply Chain Network Design Optimization of Biomass Conversion and Utilization

Supply chain network design for biomass conversion and utilization is one of the major areas with influence on biomass-related technological progress and commercialization activities. This paper contributes towards optimizing a biomass to products supply chain by considering multiple cost factors including biomass resource acquisition cost, production cost, and transportation cost as well as direct sales to meet market demands . A superstructure-based modeling approach provides alternatives of biomass processing routes towards an objective of maximizing annualized profit. The formulated model entails five echelons of biomass processing is implemented on a practical supply chain design case study that involves a biomass-based manufacturing company in southwestern Ontario, Canada intent on long-term business expansion and product portfolio improvement. The results obtained indicates that a profit on the order of CDN 22.62 million (Canadian dollar) per year can be expected to be achieved, which is mainly derived through the sales of biofiller, bioethanol, and byproducts from the milling and sieving plant. Importantly, the developed model demonstrates the applicability of such a model-based approach in offering insights on operational flexibility for attaining economic decision-making on biomass resource utilization and processing technology selection.