Municipality solid waste supply chain optimization to power production under uncertainty

Storage of municipality solid waste (MSW) in landfills is a traditional practice of the past. Negative impacts of landfills have motivated interest in the sustainable utilization of MSW. In this study, we cover the treatment of the MSW supply chain problem. The supply chain network is composed by several arcs connecting sources of MSW by treatment facilities, and markets imposing demand for products. A two-stage stochastic MILP model is formulated to examine the effects of the supply-demand, and power price uncertainties. The first stage decision variables involve technology and capacity selection. The second stage decision variables deal with transportation, and power production. An L-shaped decomposition algorithm is shown to be effective in obtaining solutions for the stochastic model. A risk model is adopted to analyze the financial risk in the organic MSW supply chain problem. A case study is examined to show the application of the mathematical programming formulation.