Optimization of Supply Chains For Production of Biofuel Using Milp (Case Study: Upper Peninsula of Michigan)
With growing concern over the decline of non-renewable energy, production of biofuel from biomass is gaining
momentum. Critical to the financial success of producing biofuel is identifying the optimal location for the facility. The
location decision is especially important for woody biomass and corn stover feedstock owing to the distributed nature of
biomass and the significant costs associated with transportation. In this study first the model was created to simulate a
similar one which was published in 2006. The Upper Peninsula of Michigan was used for the case study to locate the optimal
farming sites. The model was made multi-period with multi-feedstock and multiple biorefineries from being a single period
and single feedstock model. Depots and railway lines were added to the model. Many parameters contributed in finding the
solution which includes fuel price, transportation distance, and pulpwood and corn stover availability.
Keywords— Linear Programming, Optimization Model, Corn Stover, Pulp Wood.