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Location Selection of Bioethanol Distribution Centers

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Strategic Decision Making for Sustainable Management of Industrial Networks

Part of the book series: Greening of Industry Networks Studies ((GINS,volume 8))

Abstract

In this chapter, the location problem of bioethanol distribution centers is investigated based on two objectives. While the first objective is to maximize the overall utility of the selected places, the second objective is to minimize the cost allocated to establishing the distribution centers. To solve the problem, a hybrid methodology consisting of the best-worst method (BWM) and a set covering model is proposed. BWM is employed to calculate the overall utility of candidate places, and the set covering model is used to select the minimum number of places. By employing the methodology, the selected distribution centers cover the demand of customers within a specific radius. To calculate the overall utility of the candidate places using BWM, a comprehensive framework of sustainability criteria is presented. The proposed framework is formed by criteria extracted from studies which have employed multi-criteria decision-making methods to solve the location problem of distribution centers in different industries. The result of BWM in the proposed methodology is employed as a parameter in the utility function of the set covering model. To solve the model, Lp-metric is suggested. The performance of the proposed methodology is evaluated by a set of data collected from Iran. The proposed hybrid methodology can also be used for locating distribution centers in other industries.

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Authors and Affiliations

  1. Department of Management, Ferdowsi University of Mashhad, Mashhad, Iran

    Siamak Kheybari & Alireza Pooya

  2. NEOMA Business School, Mont-Saint-Aignan Cedex, France

    Siamak Kheybari

Authors
  1. Siamak Kheybari
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  2. Alireza Pooya
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Correspondence to Siamak Kheybari .

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Editors and Affiliations

  1. Delft University of Technology, Delft, The Netherlands

    Jafar Rezaei

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Kheybari, S., Pooya, A. (2021). Location Selection of Bioethanol Distribution Centers. In: Rezaei, J. (eds) Strategic Decision Making for Sustainable Management of Industrial Networks. Greening of Industry Networks Studies, vol 8. Springer, Cham. https://doi.org/10.1007/978-3-030-55385-2_5

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