Can Modular Manufacturing Be the Next Game-Changer in Shale Gas Supply Chain Design and Operations for Economic and Environmental Sustainability?

Abstract

Modular manufacturing is identified to have great potential in the exploitation of shale gas resource. In this work, we propose a novel mixed-integer nonlinear fractional programming model to investigate the economic and environmental implications of incorporating modular manufacturing into well-to-wire shale gas supply chains. Both design and operational decisions regarding modular manufacturing are considered, including modular plant allocation, capacity selection, installment planning, moving scheduling, and salvage operation, as well as other decisions for shale gas supply chain design and operations, such as drilling schedule, water management, and pipeline network construction. To systematically evaluate the full spectrum of environmental impacts, an endpoint-oriented life cycle optimization framework is applied that accounts for up to 18 midpoint impact categories and three endpoint impact categories. Total environmental impact scores are obtained to evaluate the comprehensive life cycle environmen...