The Effect of Environmental Criteria on Locating a Biorefinery: A Green Facility Location Problem

Serrano-Hernández, Adrián; Faulín, Javier; Belloso, Javier; Sawik, Bartosz

doi:10.7494/dmms.2017.11.1-2.19

Cited by 1 publication

(1 citation statement)

References 35 publications

(25 reference statements)

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“…From that perspective, the creation of the SPSC requires solving a Multi-echelon Location--Allocation (LA) problem (Cooper, 1963;Wang, Lee, 2015;Shankar, et al 2013). The LA problem is also key to applications in many other operation research (OR) areas, e.g., healthcare (Mestre et al, 2015), and energy (Chukwuma, 2019;Chen, Fan, 2012;Gebreslassie et al, 2012;Liu et al, 2010;Serrano-Hernandez et al, 2017). Azarmand and Neishabouri (2009) provide a classification of the LA problems.…”

Section: Literature Review and Gapsmentioning

confidence: 99%

Impact of government policies on Sustainable Petroleum Supply Chain (SPSC): A case study – Part I (Models)

Ghahremanlou

Kubiak

2020

DMMS

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Environmental concerns and energy security have led governments to establish legislations to convertConventional Petroleum Supply Chain (CPSC) to Sustainable Petroleum Supply Chain (SPSC). The United States(US), one of the biggest oil consumers in the world, has created regulations to manage ethanol production and con-sumption for the last half century. Though these regulations have created new opportunities, they have also added newburdens to the obligated parties. It is thus key for the government, the obligated parties, and related businesses to studythe impact of the policies on the SPSC. We develop a two-stage stochastic programming model, General Model (GM),which incorporates Renewable Fuel Standard 2 (RFS2), Tax Credits, Tariffs, and Blend Wall (BW) to study the policyimpact on the SPSC using cellulosic ethanol. The model, as any other general model available in the literature, makesit highly impractical to study the policy impact due to the model’s computational complexity. We use the GM to derivea Lean Model (LM) to study the impact by running computational experiments more efficiently and consequently byarriving at robust managerial insights much faster. We present a case study of the policy impact on the SPSC in theState of Nebraska using the LM in the accompanying part II (Ghahremanlou and Kubiak 2020).

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