Incorporating social benefits in optimal design of bioethanol supply chains: a case study in China

In this paper, we propose a new method of measuring social benefits of bioethanol supply chains, which considers job creation, biomass purchase and different impact of economic activities in different locations. A multi-objective MILP model is developed to address the optimal design of a bioethanol supply chain which maximizes both economic and social benefits. The ε-constraint method is employed, and a set of Pareto-optimal solutions is obtained. The developed model is applied to case studies in Heilongjiang Province in Northeast China. Actual data are collected as practical as possible for the feasibility and effectiveness of the result. The result shows the bioethanol supply chain can bring both economic and social benefits in the given area and offer governments a possible better and more efficient way to bring more social benefits. The effect of the government subsidy on enterprises' decisions about economic and social benefits is discussed.