Environmentally Friendly Supply Chain Planning and Design for Biodiesel Production via Wastewater Sludge

Abstract

This study presents mathematical models that capture the impact of different carbon-emission-related policies on the design of the biodiesel supply chain. These mathematical models identify locations and production capacities for biocrude production plants by exploring the trade-offs that exist between transportation costs, facility investments costs, and emissions. The mathematical models capture the dynamics of biomass supply and transportation costs during a predefined time horizon. We analyze the behavior of the chain under different regulatory policies such as carbon cap, carbon tax, carbon cap and trade, and carbon offset mechanisms. A number of observations are made about the impact of each policy on the supply chain performance. The models we developed are solved by using a commercial software GAMS/CPLEX. We use the state of Mississippi as the testing grounds for these models, and employ ArcGIS to visualize and validate the results from the optimization models.