Analyzing Impact of Intermodal Facilities on Design and Management of Biofuel Supply Chain

Abstract

The impact of an intermodal facility on location and transportation decisions for biofuel production plants is analyzed. Location decisions affect the management of the inbound and outbound logistics of a plant. This supply chain design and management problem is modeled as a mixed integer program. Input data for this model are location of intermodal facilities and available transportation modes, cost and cargo capacity for each transportation mode, geographical distribution of biomass feedstock and production yields, and biomass processing and inventory costs. Outputs from this model are the number, location, and capacity of biofuel production plants. For each plant, the transportation mode used, timing of shipments, shipment size, inventory size, and production schedule that minimize the delivery cost of biofuel are determined. The model proposed in this research can be used as a decision-making tool for investors in the biofuels industry since it estimates the real cost of the business. The state of Mississippi is considered as the testing grounds for the model.