Design a Sustainable Supply Chain under Uncertainty using Life Cycle Optimisation and Stochastic Programming

J. Gao, F. You
2017 Chemical Engineering Transactions  
This work addresses the life cycle economic and environmental optimisation of a supply chain network considering both design and operational decisions under uncertainty. A general modelling framework is proposed that integrates the functional-unit-based life cycle optimisation methodology and the two-stage stochastic programming approach for sustainable supply chain optimisation under uncertainty. a stochastic mixed-integer linear fractional programming (SMILFP) model is developed to tackle
more » ... loped to tackle multiple uncertainties regarding feedstock supply uncertainty and product demand uncertainty. To address the computational challenge of solving large-scale SMILFP problems, an efficient solution algorithm that takes advantage of the efficiency of parametric algorithm and the decomposition-based multi-cut L-shaped method is used. A case study based on a spatially explicit model for the county-level hydrocarbon biofuel supply chain is presented in Illinois to demonstrate the applicability of the proposed modelling and algorithmic framework.
doi:10.3303/cet1761023 doaj:7f0340e4649342a1baca49855b777cb6 fatcat:gb5zv2vs4bg6nl7uzgswnblxly