Malaysian Journal of Mathematical Sciences, December 2024, Vol. 18, No. 4
Palm Oil Biomass Supply Chain Multi-Objective Two-Echelon Location-Routing Optimization
Foo, F. Y., Zainuddin, Z. M., and Hang, S. P.
Corresponding Email: [email protected]
Received date: 8 October 2023
Accepted date: 18 August 2024
Abstract:
Malaysia generates substantial agricultural residues annually, endowing the country with significant biomass energy potential. Palm oil biomass stands out as a promising feedstock. However, its high humidity, bulkiness, low energy density, and dispersed resource locations (mills) pose challenges. A network that consisting collection facilities incorporating pretreatment operations as intermediaries between mills and biorefineries is a plausible solution. Nevertheless, the facility locations directly impact travel distance, overall expenses, and the nearby population. Moreover, vehicle routing during biomass collection influences transportation costs and carbon dioxide (CO$_2$) emissions. Consequently, this research designs a model to address the location-routing intricacies within a two-echelon biomass supply chain. The model operates as a multi-objective optimization framework, encompassing three-dimensional sustainability assessment, quantified respectively as total cost minimization, CO$_2$ emissions reduction, and minimization of the population affected. The research initially optimizes each objective function individually and subsequently advances to multi-objective optimization employing the weighted sum approach. While single-objective optimization yields optimal outcomes for each dimension, enhancements in one aspect may hinder performance in others. Nonetheless, the multi-objective optimization provides insight into the trade-offs among the sustainability objectives. The computational findings demonstrate the model could adapt the network configuration in alignment with distinct sustainability aspirations.
Keywords: biomass supply chain; location-routing problem; mixed integer nonlinear programming; palm oil biomass; two-echelon location-routing model
