A resilient biofuel supply chain design based on Paulownia and Jatropha under uncertainty considering the water-energy nexus

Abstract

The growth in global population, pollution, and energy demand, in addition to dwindling fossil fuel reserves, are driving scientists and industries toward adopting biomass-based products over non-renewable energy sources. Moreover, the decline of water resources and the importance of conserving water have induced governments to start initiatives to control the consumption of water, especially in the agricultural and industrial sectors. Therefore, the water-energy nexus is a significant issue that has drawn the interest of researchers in recent years. A bi-objective two-stage stochastic multi-product optimization model is presented for designing a resilient second-generation biofuel supply chain under uncertainty, considering the water-energy nexus. In this supply chain, biofuel is yielded from inedible plants Paulownia and Jatropha. Various resilience strategies are adopted to cope with potential disruptions to the supply chain, including multi-sourcing, capacity expansion, imports, multiple transportation modes, and lateral transshipment. The objectives of the model are twofold: maximizing profit and minimizing water consumption. This is achieved by making some key decisions including: facility location, managing the flows of raw materials and finished products among networks, determining production volumes, setting inventory levels, allocating land for biomass crop cultivation, planning production and storage capacities, scaling capacity expansions, the number of vehicles to rent or purchase, and optimizing the amounts of raw materials to import and biomass to export. An actual case study is provided to demonstrate the real-world applicability of the approach, while multiple sensitivity analyses are performed on the problem's main parameters. The study concludes by providing valuable managerial insights that focus on the cost savings and profit increases achievable through resilience strategies. The analysis considers different scenarios and explores effective methods for handling disruptions, emphasizing water resource conservation achieved by integrating the water-energy nexus within the biofuel supply chain.