An integrated sustainable bio-fuel and bio-energy supply chain: A novel approach based on DEMATEL and fuzzy-random robust flexible programming with [formula omitted] measure

Abstract

The viability of the Indian government’s green initiative to blend 20% fuel grade ethanol with gasoline is investigated by modelling a sustainable integrated bio-fuel and bio-energy supply chain with multiple echelons in order to address the dual crisis of fossil fuels, i.e., environmental as well as gradually diminishing reserves. In order to find the best strategic and planning decisions, a multi-objective mixed integer programming model is developed that analyses the supply chain from a technological, economic, environmental, and social standpoints while handling various feedstocks, supply zones, products, and multiple periods. The drawbacks in addressing the uncertainty in the parameter as well as risk in decision making are overcome by introducing a novel fuzzy-random robust flexible programming approach based on Me measure and probabilistic programming. The presented model incorporates hybrid uncertainty, flexible constraints and a convex mixture of optimistic-pessimistic perspective of decision maker. A hybrid strategy combining the fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) method and the multi-choice reference point goal programming with S-shaped utility function is presented to solve the generated multi-objective model. A case study in West Bengal, India is then performed that envisages the economic, environmental and social aspects of a bio-fuel and bio-energy supply chain.