Integrated decision making for the optimal bioethanol supply chain

Highlights: • Optimal allocation, design and production planning of integrated ethanol plants is considered. • Mixed Integer Programming model is presented for solving the integration problem. • Different tradeoffs can be assessed and analyzed. • The modeling framework represents an useful tool for guiding decision making. - Abstract: Bioethanol production poses different challenges that require an integrated approach. Usually previous works have focused on specific perspectives of the global problem. On the contrary, bioethanol, in particular, and biofuels, in general, requires an integrated decision making framework that takes into account the needs and concerns of the different members involved in its supply chain. In this work, a Mixed Integer Linear Programming (MILP) model for the optimal allocation, design and production planning of integrated ethanol/yeast plants is considered. The proposed formulation addresses the relations between different aspects of the bioethanol supply chain and provides an efficient tool to assess the global operation of the supply chain taking into account different points of view. The model proposed in this work simultaneously determines the structure of a three-echelon supply chain (raw material sites, production facilities and customer zones), the design of each installed plant and operational considerations through production campaigns. Yeast production is considered in order to reduce the negative environmental impact caused by bioethanol residues. Several cases are presented in order to assess the approach capabilities and to evaluate the tradeoffs among all the decisions