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# A decomposition approach based on meta-heuristics and exact methods for solving a two-stage stochastic biofuel hub-and-spoke network problem

## Abstract

An alternative to the production of fossil transportation fuels is the production of biofuels, particularly, bioethanol. One of the main opportunity areas is the reduction in the overall cost of biofuel. An approach to reduce this cost is to design and implement a supply chain (SC) that considers the quality-related properties of the biomass as well as the economies of scale to minimize the logistics and quality-related costs. This problem is formulated as a hub location problem, which has been classified as an NP-hard problem, thus, meta-heuristics are a suitable approach to solve this problem. We propose a hybrid meta-heuristic solution procedure to solve large-scale instances of a two-stage stochastic biomass-to-biorefinery hub-and-spoke network problem. This solution procedure is proposed to support the large-scale production and distribution of bioethanol by considering the variability in its moisture and ash contents. The hybrid method utilizes a simulated annealing-simplex method to find an initial solution and a tabu search-simplex method to improve the solution. Numerical experimentation was performed on a realistic case study in Texas. The findings demonstrate that the hybrid procedure outperforms the standard L-shaped (LS) method. The meta-heuristic combining simulated annealing and tabu search with the simplex method (SATS-SM) achieved 2.48% lowermore »

- Authors:

- Univ. of Texas at San Antonio, TX (United States)
- Idaho National Lab. (INL), Idaho Falls, ID (United States)

- Publication Date:

- Research Org.:
- Idaho National Lab. (INL), Idaho Falls, ID (United States)

- Sponsoring Org.:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE)

- OSTI Identifier:
- 1582316

- Report Number(s):
- INL/JOU-19-53972-Rev000

Journal ID: ISSN 0959-6526

- Grant/Contract Number:
- AC07-05ID14517

- Resource Type:
- Accepted Manuscript

- Journal Name:
- Journal of Cleaner Production

- Additional Journal Information:
- Journal Volume: 247; Journal Issue: C; Journal ID: ISSN 0959-6526

- Publisher:
- Elsevier

- Country of Publication:
- United States

- Language:
- English

- Subject:
- 09 BIOMASS FUELS; 97 MATHEMATICS AND COMPUTING; Two-stage stochastic programming; Hybrid meta-heuristics; Biofuels; Biomass; Sustainable supply chain

### Citation Formats

```
Aboytes-Ojeda, Mario, Castillo-Villar, Krystel K., and Roni, Mohammad S. A decomposition approach based on meta-heuristics and exact methods for solving a two-stage stochastic biofuel hub-and-spoke network problem. United States: N. p., 2019.
Web. doi:10.1016/j.jclepro.2019.119176.
```

```
Aboytes-Ojeda, Mario, Castillo-Villar, Krystel K., & Roni, Mohammad S. A decomposition approach based on meta-heuristics and exact methods for solving a two-stage stochastic biofuel hub-and-spoke network problem. United States. doi:10.1016/j.jclepro.2019.119176.
```

```
Aboytes-Ojeda, Mario, Castillo-Villar, Krystel K., and Roni, Mohammad S. Thu .
"A decomposition approach based on meta-heuristics and exact methods for solving a two-stage stochastic biofuel hub-and-spoke network problem". United States. doi:10.1016/j.jclepro.2019.119176.
```

```
@article{osti_1582316,
```

title = {A decomposition approach based on meta-heuristics and exact methods for solving a two-stage stochastic biofuel hub-and-spoke network problem},

author = {Aboytes-Ojeda, Mario and Castillo-Villar, Krystel K. and Roni, Mohammad S.},

abstractNote = {An alternative to the production of fossil transportation fuels is the production of biofuels, particularly, bioethanol. One of the main opportunity areas is the reduction in the overall cost of biofuel. An approach to reduce this cost is to design and implement a supply chain (SC) that considers the quality-related properties of the biomass as well as the economies of scale to minimize the logistics and quality-related costs. This problem is formulated as a hub location problem, which has been classified as an NP-hard problem, thus, meta-heuristics are a suitable approach to solve this problem. We propose a hybrid meta-heuristic solution procedure to solve large-scale instances of a two-stage stochastic biomass-to-biorefinery hub-and-spoke network problem. This solution procedure is proposed to support the large-scale production and distribution of bioethanol by considering the variability in its moisture and ash contents. The hybrid method utilizes a simulated annealing-simplex method to find an initial solution and a tabu search-simplex method to improve the solution. Numerical experimentation was performed on a realistic case study in Texas. The findings demonstrate that the hybrid procedure outperforms the standard L-shaped (LS) method. The meta-heuristic combining simulated annealing and tabu search with the simplex method (SATS-SM) achieved 2.48% lower costs and required 96.57% less time, on average, when compared to the results from using the LS.},

doi = {10.1016/j.jclepro.2019.119176},

journal = {Journal of Cleaner Production},

number = C,

volume = 247,

place = {United States},

year = {2019},

month = {11}

}