Optimal design and planning of biodiesel supply chain with land competition

In this work we propose an MILP multiperiod formulation for the optimal design and planning of the Argentinean biodiesel supply chain, considering soybean, sunflower and jatropha as raw materials. The country has been divided into twenty three regions, corresponding to its provinces, each one including existing crops, oil and biodiesel plants and potential ones, associated to binary variables. The model takes into account intermediate and final products, including seed, flour, pellets and expellers, oil, pure and blending biodiesel and glycerol, together with crop fields, storage and production plants, as well as distribution centers for internal and external markets. The possibility of employing increasing portions of marginal areas for jatropha production has been introduced, as well as this raw material increasing yield along its life cycle. The optimization of this complex network allows simultaneously fulfilling domestic demand of flour, oil and biodiesel while satisfying increasing demands in external markets. The time horizon is of seven years (2012-2018), divided into 84 periods. Numerical results provide insights on the sustainable development of traditional and alternative raw materials and technologies. The mathematical model has been implemented in GAMS providing a complete decision tool that can be applied to other regions or countries by adjusting specific data.