Modelling of ethanol supply chain in Thailand

This paper aims to model the ethanol supply chain in Thailand. A mathematical model for the plants-to-customers supply chain was developed with the objective to minimize the total cost of supply chain. The model solution provided data for decision-making of supply chain stakeholder, particularly by the ethanol manufacturers and petroleum traders. These data can help ethanol manufacturers make appropriate decisions for monthly materials procurement and inventory control, including ethanol production plans, sale, and transportation scheduling for suitable customers. The results from the sensitivity analysis indicated that molasses prices affect feedstocks procurement and ethanol production, and diesel prices also affect ethanol distribution. Therefore, the Thai government should promote increasing the cassava supply if the molasses price increases. In addition, transportation infrastructure of the country, particularly the railway system, should be developed to decrease truck transportation to reduce ethanol distribution costs.