CAREER: Models for Supply Chain Design and Logistics Management of Biofuels

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The research objective of this Faculty Early Career Development (CAREER) award is to build integrated supply chain design and management models for biofuels. These supply chain models will (1) consider the specific nature of biomass supply; (2) take an integrated view of production, transportation, and inventory; and (3) integrate strategic, tactical, and operational decisions. The goal is to improve the performance of this supply chain, and consequently increase the practicality of biofuels as a source of energy. In pursuit of this objective, the following two research areas will be investigated. (1) Supply chain design problems. Two-stage stochastic programming models will be developed that integrate location decisions with transportation and inventory management decisions. (2) Production and distribution problems. Multi-criteria optimization models will be developed that minimize supply chain related costs, and maximize the positive impact of biofuels to the environment.This research will significantly advance the knowledge base needed to address supply chain design and management problems for biofuels. Other industries, such as the personal computer and retail industries are already taking advantage of sophisticated supply chain designs. This work will help build the infrastructure that is necessary to switch from using petroleum to using biofuels as a source of renewable and sustainable energy, since well-organized supply chains have the potential to decrease transportation, inventory and other related supply chain costs. This research has the potential to positively impact the society by creating substantial economic value for farmers and biorefineries. Another major contribution of this award will be its impact to the education of graduate and undergraduate students through participation in this research project, and through discussion of related case-studies that will be used in the classroom.