Modeling and Optimization of Jatropha Supply Chain for Biodiesel Production in Nigeria

Abstract

This work dealt with the development of simulation model for Jatropha biodiesel supply chain. It also investigated the effects of Jatropha supply chain variables on the system performance criteria and determined the optimum sequence for the Jatropha supply chain management. This was with a view to providing an insight into the feasibility of using Jatropha as a raw material for the production of biodiesel in Nigeria. The study determined the viability of the feedstock and processing technologies, decision time frame as well as levels in the supply chain and developed a similar model with simple graphical user interface for the biodiesel supply chain. Simulation model software, Arena was used to facilitate the exploration of different conditions that will bring about profitable biomass utilization. The model considered key supply chain activities including the feedstock harvesting/processing, transportation and storage. The model also used feedstock cost, energy consumption, economic analysis and measures of investment ranking: net present value (NPV), benefit cost (B/C) and internal rates of returns (IRR). Statistical and numerical results showed that the development of the biodiesel supply chain in Nigeria requires an increasing use of land to produce oil and biodiesel to satisfy future domestic and external demand. Even though there were no earlier studies of this nature in Nigeria, the template of this study can be used to provide important information for stakeholders and investors of Jatropha for biodiesel production as obtainable in other interested countries of the world.