A Multi-objective MILP Model Proposed to Optimize a Supply Chain Network for Microalgae-based Biofuels and Co-products: A Case Study in Iran

Abstract Recently, due to the efficiency of cultivating microalgae, researchers and investors have paid considerable attention to the production of different biofuel products that are environmentally friendly. In this study, a two-stage deterministic model is proposed to design a microalgae-based biofuels and co-products supply chain network (MBCSCN). In the first stage, the appropriate locations for the cultivation of microalgae are identified through the analytical hierarchy process (AHP). In the second stage, a deterministic mathematical mixed integer linear programing (MILP) model is developed for a period of five years based on the criteria of economic and environmental impacts. The economic objective function maximizes the overall profit, while the environmental impacts objective function seeks to minimize the consumed fossil fuel throughout the supply chain. Then, a multi-objective MILP optimization problem is solved using the ε-constraint method. The proposed model is evaluated through a case study in Iran. It has helped to identify appropriate locations for the cultivation of microalgae and to specify the required quantity of feedstock, the species of microalgae, the required technology, and the transportation modes in each step of the supply chain.