Regional bioethanol supply chain optimization with the integration of GIS-MCDM method and quantile-based scenario analysis

This study presents a novel decision-support framework for the bioethanol supply chain network planning and management under uncertainties. Under the holistic framework, the most suitable sites for biorefineries are first screened out by adopting a GIS-based multi-criteria decision-making approach. Then, a mixed-integer linear programming model combined with quantile-based scenario analysis is developed to determine the strategic planning (i.e. locations and size of biorefineries) and tactical management (i.e. biomass purchasing, feedstock transportation, bioethanol production, and product delivery) under uncertainties. The model can effectively search for reliable solutions under uncertainties and achieve tradeoff solutions with the consideration of decision makers' risk tolerance. The proposed framework is demonstrated through a case study in China. It is suggested to build seven biorefineries with a capacity of 100 million liters in Zhumadian city. Utilizing 41% of local agricultural residues could satisfy the bioethanol requirement in the transportation sector under the E20 policy. However, the estimated production cost of bioethanol in Zhumadian is very high, about 1.11 $/L, which makes it lose cost advantage in the fuel market. Thus, currently, effective subsidies, mandatory energy substitution policies, along other environmental regulatory measures are desired to promote the bioethanol industry development.