A decisional simulation-optimization framework for sustainable facility location of a biodiesel plant in Colombia

Abstract In this paper, we develop a decisional framework and a mathematical model for the sustainable design of biodiesel supply chain networks (BSCND). We consider a broad group of sustainable aims, i.e. standard economic goals (revenue and logistics costs of BSCND), environmental issues based on a biodiesel production life cycle assessment (LCA), and the social incidental aspects (e.g. crime control, political stability, and community attitude, among others). The framework begins with a simulation of the biodiesel production system, feeding later, with suitable input parameters and suitable solutions, and a macro-location model designed to establish the regional positioning of biofuel conversion plants. Optimal regions are used as initial feasible solution space for the proposed micro-location model. In this part of the framework, we introduce an adaptation of Extended Goal Programming to rank the best municipalities (definitive locations) emphasizing the social aspects under consideration. The framework application is set up in the following Colombian context: first generation biodiesel production from palm oil feedstock. Our computational results indicate that the Colombian city of Rionegro (in the Santader region) is the most sustainable location for a new biodiesel plant.