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A global bioenergy supply network redesign through integrating transfer pricing under uncertain condition

Razm, Sobhan, Nickel, Stefan, Saidi-mehrabad, Mohammad, Sahebi, Hadi
Journal of cleaner production 2019 v.208 pp. 1081-1095
alternative fuels, biofuels, biomass, case studies, decision making, economic policy, fossil fuels, globalization, heat, managers, model validation, models, prices, transportation industry, Armenia, Iran
Biomass, as a renewable material and a clean alternative fuel in generating electricity and heat, is of particular importance in the transportation industry for the production of biofuel instead of fossil fuels. So far, many models have been proposed for the Bioenergy Supply network design, all of which are local and focus on designing new configurations that conform to a specific country's economic policies. But since globalization of the economy and industry is unavoidable today, effort has been made in this paper to propose a global Bioenergy Supply network management model. Contrary to the present literature on the Bioenergy Supply network, the proposed model addresses the redesign of an existing biomass supply network through logistic decisions, financial problems, and related merits. The model objectives can help managers to make decisions using the best transfer prices to maximize the global after tax profit of the biomass company even under uncertain conditions. To validate the model, use has been made of the data of a case study in Iran and Armenia. At last, it is concluded when transfer price is considered at the model, the global after tax profit can increase more than 8% compared with the case of without transfer price.