Bioethanol supply chain system planning under supply and demand uncertainties

A mixed integer stochastic programming model is established to support strategic planning of bioenergy supply chain systems and optimal feedstock resource allocation in an uncertain decision environment. The two‐stage stochastic programming model, together with a Lagrange relaxation based decomposition solution algorithm, was implemented in a real‐world case study in California to explore the potential of waste‐based bioethanol production. The model results show that biowaste‐based ethanol can be a viable part of sustainable energy solution for the future.