Organic waste derived biodiesel supply chain network: Deterministic multi-period planning model

Abstract

In this study, a multi-period model of an organic waste-to-biodiesel phased supply chain network is developed to strategically consider variations in the biodiesel demand and the organic waste usage over a long-term planning interval. The proposed model can facilitate planning to determine the biorefinery location and the amount of biodiesel to produce, transport, or utilize to reduce the total cost of the organic waste-to-biodiesel supply chain network design while meeting the biodiesel demand during each period of the planning interval. The features and capabilities of the model are validated by application of a future organic waste-to-biodiesel supply chain network design in South Korea. The optimization results illustrate that the average total annual cost of the organic waste of biodiesel based on the multi-period model will be $US 4.2 billion per year during the period 2020–2030. The minimum selling prices for the optimal network design were determined ranged from $US 3.154–3.156/gallon of biodiesel containing 3% butanol derived from organic waste combined with diesel. A small portion (4.9–6.6%) of the total biodiesel demand was produced from organic waste because of low organic waste availability in the existing anaerobic digestion facilities, leading to increasing the outsourcing costs of butanol. The proposed approach will facilitate the strategic development of a sustainable supply chain network for organic waste recycling for material and energy valorization.