Sets

N : Nodes of distribution network G(N , A ), for all i , j, k ∈ N

A : Arcs of distribution network G( N , A ), for all (i , j),( j, k )∈ A
C : Counties, for all i∈ C
D : Potential locations for hubs, for all j ∈ D
B : Potential locations for biorefineries, for all k ∈ B
T : Arcs from C to D , for all (i , j)∈T
R : Arcs from D to B, for all ( j, k )∈ R
L : Technologies for conversion, for all l ∈ L, (only one element i.e. thermochemical)

Subsets

C d́ : Counties with at least one hub within the allowed distance d́ , for all i∈ C d́ ⊂ C
D ( d́ , d́ ) : Potential locations for hubs with at least one county within the allowed distance d́ and
one biorefinery within the allowed distance d́ , for all j ∈ D( d́ , d́ )⊂ D
Bd́ : Potential locations for biorefineries with at least one hub within the allowed distance d́ , for
all k ∈ B d́ ⊂ B
T d́ : Arcs with a distance less than or equal to d́ , for all (i , j)∈T d́ ⊂T
Rd́ : Arcs with a distance greater than or equal to d́ , for all ( j, k ) ∈ Rd́ ⊂ R

Parameters

ξ j : Hub investment cost at node j ∈ D , 3,476,219 $

u j : Processing capacity of hub j ∈ D , 300,000 Mg

ϱ kl : Investment cost to open a biorefinery at location k ∈ B utilizing technology l ∈ L,

130,956,797 $
q kl : Conversion capacity of refinery k ∈ B utilizing technology l ∈ L, 152,063,705 liters
y kl : Yield of biorefinery k ∈ B utilizing technology l ∈ L, 232 liters/Mg
ψ jk : Fixed cost of loading/unloading a unit train along arc ( j, k )∈ R , 3,066,792 $
v jk : Maximum capacity of a unit train along arc ⁡( j , k )∈ R , 338,000 Mg

c Tij : Cost of transporting biomass through that specific road utilizing truck along arc (i , j)∈T ,
($/Mg)
R
c jk : Cost of transporting biomass through that specific railroad utilizing train along arc
( j, k )∈ R , ($/Mg)
α : Third-party cost ($/liter) estimated with a market analysis.
si (o): Available supply in county i∈ C
gkl : Conversion yield for biomass supplied to biorefinery k ∈ B utilizing technology l ∈ L , 232
liters/Mg
d : Total market demand for biofuel in the network G , 1,476,310,602 liters
Variables

X ijl : Flow along arc (i , j)∈T

Y jkl: Flow along arc ( j, k )∈ R
Z jk : Number of units trains along arc ( j, k ) ∈ R for a period of one year
β kl : A binary variable which takes the value 1 if k ∈ B is a biorefinery utilizing technology l ∈ L,
and 0 otherwise
W j : A binary variable which takes the value 1 if a hub is located in j ∈ D is used as hub, and 0
otherwise
Π : Amount of bioethanol delivered by a third party (liters)

Min: Hub investment cost ($) + Biorefinary investment cost ($) + Train loading/unloading cost
(($/Train) * (Number of unit Trains) +

Cost of transportation by Truck ($/Mg) * Biomass flow (Mg) + Cost of transportation by Train
($/Mg) * Biomass flow (Mg) + Cost due to third party supply.

Objective function is to minimize:

¿ P= ∑ ❑ ξ j W j + ∑ ❑ ∑ ❑ ϱ kl β kl+ ∑ ❑ ∑ ❑ψ jk Z jk
j∈ D k∈ B l ∈L j∈ D k ∈B

+ ∑ ❑ ∑ ❑ ∑ ❑c X ijl + ∑ ❑ ∑ ❑ ∑ ❑c Y jkl +α Π
T R
ij jk
i ∈C j∈ D l ∈L j∈D k ∈B l∈ L
Flow of biomass (Mg) along arc (i , j) ∈T utilizing technology l ∈ L must be less than or
equal to the supply for all i ( counties)

∑ ❑ ∑ ❑ X ijl ≤ s i ∀ i ∈C ,
j∈D l∈ L

Since there is no storage, there should be a mass balance constraint. [ Flow of biomass
(Mg) along arc (i , j)∈T utilizing technology l ∈ L ] must be equal to *[Flow of biomass (Mg)
along arc ( j, k ) ∈ R utilizing technology l ∈ L ]

∑ ❑ X ijl = ∑ ❑Y kjl ∀ j ∈ D , l∈ L
i ∈C k ∈B

[Conversion yield (liters/Mg)] *[Flow of biomass (Mg) along arc ( j , k )∈ R utilizing technology
l ∈ L ] + [Amount of bioethanol (liters) supplied by a third party] must be equal to the
network demand.
∑ ❑ ∑ ❑∑ ❑ g kl Y jkl + Π=d ∀ o ∈ Ω
j∈D k ∈B l∈ L

The price constraint. When the company is not able to supply the required
demand of biofuel at a competitive price (i.e., at a price below the third-party price), then, the
biofuel is bought from the vendor.
P−α Π
<1
(d −Π) α

[Flow of biomass (Mg) along arc ( j , k )∈ R utilizing technology l ∈ L ] must be less than or
equal to [Maximum capacity (Mg) of a unit train along arc ⁡( j , k )∈ R ] * [Number of units
trains along arc ( j, k )∈ R ]

∑ ❑Y jkl ≤ v jk Z jk ∀ j ∈ D , k ∈ B
l∈ L

[Flow of biomass (Mg) along arc (i , j)∈T utilizing technology l ∈ L ¿ must be less than or
equal to [Processing capacity (Mg) of hub j ∈ D ¿ * [A binary variable which takes the value 1 if
a hub is located in j ∈ D is used as hub, and 0 otherwise] for all hubs.

∑ ❑∑ ❑ X ijl ≤u j W j ∀ j ∈ D
i ∈C l ∈L

[Conversion yield (liters/Mg)] *[Flow of biomass (Mg) along arc ( j , k )∈ R utilizing technology
l ∈ L ] must be less than or equal to [Conversion capacity (liters) of refinery k ∈ B utilizing
technology l ∈ L] * [A binary variable which takes the value 1 if k ∈ B is a biorefinery utilizing
technology l ∈ L, and 0 otherwise]

∑ ❑ gkl Y jkl ≤ q kl β kl ∀ k ∈ B , l ∈ L
j∈ D

[Flow of biomass (Mg) along arc (i , j) ∈T utilizing technology l ∈ L ¿ must be greater than
zero.
X ijl ≥ 0 ∀ i∈C , j ∈ D ,l ∈ L
[Flow of biomass (Mg) along arc ( j, k ) ∈ R utilizing technology l ∈ L ] must be greater than
zero.
Y jkl ( o ) ≥ 0 ∀ j ∈ D , k ∈ B ,l ∈ L

Amount of bioethanol delivered by a third party must be greater than or equal to zer0.
Π ≥0

W j ∈ { 0,1 } ∀ j ∈ D
β kl ∈ {0,1 } ∀ k ∈ B ,l ∈ L
+¿ ∀ j ∈ D ,k ∈ B ¿
Z jk ∈ Z