Optimization of the agricultural and forestry biomass power generation supply chain considering multi-period inventory

Abstract

Biomass fuel supply fluctuates due to seasonal effects, making stocks unstable. In this study, a multi-cycle inventory optimization model of agricultural and forestry biomass power supply chain was constructed based on mixed integer linear programming, considering the cooperative supply of agricultural and forestry biomass and the dynamic change of inventory. Based on case study and sensitivity analysis, the dominant model and inventory size suitable for this supply chain are discussed. The results of case study show that the broker-led model is more suitable for the supply chain of collaborative supply of agricultural and forestry biomass. After optimization, the warehouse area of the power plant is 0.83$h{m}^2$, and the warehouse area of the five acquisition stations is 4.81 $h{m}^2$. Compared with the unoptimized state, the operating cost of the supply chain is reduced by 9.77 %, saving about 850,000 $CNY$ per year. Further sensitivity analysis of the factors affecting the inventory cost shows that reducing the footprint of the warehouse and increasing the biomass supply can reduce the cost of the warehouse and improve the economic benefit. This study solves the problem of inventory overstocking caused by seasonal fluctuations of biomass fuel supply and improves supply chain stability.