Uncertainty is a key challenge that limits the sustainable development of second generation biofuel supply chain. This paper aims to optimize this supply chain under biofuel demand uncertainty, with the consideration of quantity discount contract on feedstock procurement. Such a supply chain comprises three components: feedstock fields, biofuel refineries and biofuel demand zones, and the focus is to determine the optimal plans for: (a) biofuel refineries location and size; (b) feedstock procurement strategy; (c) transportation plan for feedstock and biofuel. A mixed integer stochastic programming model with bi-objective is proposed and then the solution procedure is developed to this problem. Finally, a case is adopted to explain the algorithm.
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