Analyzing the impact of intermodal facilities to the design and management of biofuels supply chain.
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2010
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Abstract:This paper analyzes the impact that an intermodal facility has on location and transportation
decisions for biofuel production plants. Location decisions impact the management of the in-bound and out-bound logistics of a plant. We model this supply chain design and management
problem as a mixed integer program. Input data for this model are location of intermodal
facilities and available transportation modes; cost and cargo capacity for each transportation
mode; geographical distribution of biomass feedstock, and production yields; and biomass
processing, and inventory costs. Outputs from this model are the number, location and capacity
of biofuel production plants. For each plant, the transportation mode used, timing of shipments,
shipments size, inventory size, and production schedule that minimize the delivery cost of
biofuel are determined. The state of Mississippi is considered as the testing grounds for our
model. Experimental results indicate that the best location for a (corn-to-ethanol) biorefinery in
Mississippi is Warren County, where an in-land port is located. Results indicate that, even when
the biomass available in Mississippi is enough to operate this facility, it is economical to ship
corn from the Midwest using barge.
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