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<p>The Hydrotreated Vegetable Oil (HVO) supply chain is a complex, integrated system that spans multiple levels and requires an optimization approach to achieve the most effective solution. This study examines the multi-echelon HVO supply chain, encompassing suppliers, biorefinery facilities, waste disposal units, and end users. This study proposes a Mixed Integer Linear Programming (MILP) model for designing a multi-echelon HVO supply chain network that integrates raw material purity levels and waste-to-energy conversion into the HVO supply chain optimization model. The numerical results indicate that the total supply chain cost over six planning periods is $141,092.5, with conversion efficiencies ranging from 80% to 90%. These efficiencies significantly influence the amount of HVO produced and the volume of waste generated. Sensitivity analysis shows that changes of ± 40–60% in production and waste treatment costs substantially alter the allocation of biorefineries and disposal facilities. Waste output is highly responsive to changes in conversion efficiency; a 20% reduction in the conversion factor results in the highest liquid and gas waste generation, while a 60% improvement results in the lowest waste volume. Furthermore, gas waste processing generates an estimated 5,500 kWh of recoverable energy, demonstrating the environmental benefits of integrating waste-to-energy systems into the supply chain. These findings underscore the critical importance of feedstock purity, conversion efficiency, and waste processing strategies in enhancing the economic and environmental performance of an optimal, sustainable HVO supply chain.</p>

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Innovative and Eco-Friendly Supply Chain Management for Hydrotreated Vegetable Oil with Waste Processing and Raw Materials Purity Levels

  • 期刊论文

  • 发表日期：

    2026年5月19日

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  • Tita Talitha,
  • Wakhid Ahmad Jauhari,
  • Cucuk Nur Rosyidi,
  • Muh Hisjam

摘要

The Hydrotreated Vegetable Oil (HVO) supply chain is a complex, integrated system that spans multiple levels and requires an optimization approach to achieve the most effective solution. This study examines the multi-echelon HVO supply chain, encompassing suppliers, biorefinery facilities, waste disposal units, and end users. This study proposes a Mixed Integer Linear Programming (MILP) model for designing a multi-echelon HVO supply chain network that integrates raw material purity levels and waste-to-energy conversion into the HVO supply chain optimization model. The numerical results indicate that the total supply chain cost over six planning periods is $141,092.5, with conversion efficiencies ranging from 80% to 90%. These efficiencies significantly influence the amount of HVO produced and the volume of waste generated. Sensitivity analysis shows that changes of ± 40–60% in production and waste treatment costs substantially alter the allocation of biorefineries and disposal facilities. Waste output is highly responsive to changes in conversion efficiency; a 20% reduction in the conversion factor results in the highest liquid and gas waste generation, while a 60% improvement results in the lowest waste volume. Furthermore, gas waste processing generates an estimated 5,500 kWh of recoverable energy, demonstrating the environmental benefits of integrating waste-to-energy systems into the supply chain. These findings underscore the critical importance of feedstock purity, conversion efficiency, and waste processing strategies in enhancing the economic and environmental performance of an optimal, sustainable HVO supply chain.