A Mixed-Integer Programming Model for Solving a Two-Level Location-Routing Problem in Biomass Supply Chains
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Abstract
This study presents a mixed-integer programming model to address the location and routing problem for optimizing a two-level biomass supply chain. The primary objective is to select collection points and determine transportation routes from forest areas to collection points and from these points to biorefineries to minimize the total cost. While the initial model is non-linear, a linearization approach facilitates efficient solution finding. Real-world biomass data is used to evaluate the model's effectiveness. The results demonstrate that the two-level routing strategy significantly reduces overall costs by up to 12.92 % compared to a single-level approach. Consequently, the findings of this study can enhance the logistics efficiency of the biomass supply chain in Thailand, promoting the sustainable development of biomass energy in the future.
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