Simulation Modeling in Supply Chain Management Research of Ethanol: A Review

Abstract

Ethanol, a common renewable energy resource, can reduce greenhouse gas (GHG) emissions to resolve the problem of global warming worldwide. Various feedstocks such as corn, sugarcane, maize stover, and wheat straw can be utilized for ethanol production. They determine production operations and relevant costs. Although there are monetary incentives and government policies in different countries to increase ethanal use, it is still challenging to make its sales price competitive due to the inefficient supply chain of ethanol. Unlike fossil fuels such as coal, oil, and natural gas using a well-designed supply chain in the long history of mankind, additional efforts are needed to organize and stabilize the supply chain of ethanol efficiently. The goal of this study is to investigate how simulation modeling techniques can be applied to various supply chain management issues of ethanol. Particularly, application cases of three major simulation paradigms such as discrete-event simulation, system dynamics, and agent-based simulation are investigated by conducting a scientific literature review. The findings of this study will contribute to the expansion of simulation use in the field of biofuel supply chain management.