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Analyzing the impact of intermodal-related risk to the design and management of biofuel supply chain |
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| Institution: | 1. Faculty of Engineering, Urmia University, Urmia, West Azerbaijan Province, Iran;2. Department of Systems and Industrial Engineering, University of Arizona, Tucson, Arizona, USA;3. School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran;1. Concordia University, Montreal H3G 1M8, Canada;2. Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Montreal, Canada;3. HEC Montréal, Montreal, Canada;4. Department of Industrial Engineering, Tarbiat Modares University, Tehran, Iran |
| Abstract: | 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. |
| Keywords: | Supply chain design Intermodal hub disruption Densified biomass Rail and barge transportation Benders decomposition |
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