Uncertainties in the Bidirectional Biodiesel Supply Chain

Abstract

For remote areas, small-scale local biodiesel production is particularly attractive if producers and consumers are the same. Such supply chains are labeled as bidirectional. However, little is known on how raw material supply, transportation, logistics, production and operations uncertainties impact the operational performance of such Bidirectional Biodiesel Supply Chains. This paper contributes by exploring these uncertainties in a multiple case study, directed at mobile processing of rubber seeds, in a remote area. Scientifically, the paper contributes by identifying several novel sources of uncertainty: a short-term perspective, lack of knowledge and the previously unrecognized influence of the local government. Additionally, based on these findings, an extended theoretical framework is proposed which links sources of uncertainty to operational performance. The study provides also insights for stakeholders aiming to increase local biofuel production and provides a stepping-stone to investigate adequate measures to manage the identified uncertainties.