AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
logistics system management process as it can quickly adapt to
relatively small changes. Assessing the fact that the price may
rise or fall gradually makes the logistics system even more
resilient. If the prices rise cluster subjects in the area can provide
themselves with the required amount of cheap fuel, which would
enable cost-effective operations over a long period of time.
Table 8 Daily biomass preparation cost in the second area.
Supply
site ID
(Second
area
Required
quantity of
biomass,
toe
Sum
(NF)
DBPC,
(FP =
1,10)
DBPC
(FP =
1,20)
1
515
4120
4532
4944
2
245
1960
2156
2352
3
215
1720
1892
2064
4
335
2680
2948
3216
5
540
4320
4752
5184
Total:
1850
14800
16280
17760
Source: created by the authors
The results obtained in the empirical study show that the
logistics system can be effective in areas with both high and low
demand for biomass. Transportation and biomass processing
costs are heavily influenced by fuel costs. Changing operational
costs also change the final biomass price. Generally speaking it
can result in increased or decreased energy prices for end users.
In the second area, due to the relatively unfavourable distribution
of the mines, biomass cannot be supplied from the northern part
of the area, but the logistics system helps maintaining region's
competitiveness in terms of energy. In the case of the first area, a
more even distribution of biomass processing sites enables a
balanced distribution of biomass flows, and the logistics supply
chain is key in achieving this goal.
3 Conclusion
Logistics system is a universal tool that helps balancing the
supply of resources in required directions. This is especially
relevant for a biomass cluster as its activities are based on
smooth biomass supply to power plant. In the case of biomass
clusters flexible logistics system is used and depending on
demand intermediary services may or may not be used to fulfil
it. There are several types of logistics systems, but it is generally
acknowledged that the main elements of the logistics system are
the manufacturer, the intermediary (if necessary) and the user.
All trading operations are carried out between these entities.
In this research we used data related to the amount of biomass
consumed and seasonality in two hypothetical areas. Areas have
different energetic capacities, which allows us to reveal the
flexibility of the logistics system. In the first area there are seven
biomass supply sites and the power plant is located almost in the
middle of the geographical region. In the second area there are
five biomass supply sites but the combustion point is located in
the northern part of the region. The latter complicates the
biomass supply process and emphasizes the need for a logistics
system. Seasionality changes the demand for biomass, which
affects the intensity of the logistics chain. To analyze the impact
of the logistics system costs of fuel used for biomass
transportation and processing are examined.
The obtained empirical research results show that the logistics
system works in both high and low intensities of biomass usage.
It has been established that more distant supply sites can be used
when demand for biomass is increasing evenly and closed sites
can be utilized to neutralize sudden jumps in demand. Fuel price
volatilities significantly increase the costs therefore when the
fuel price rises, logistics system enables a more responsible
management of the costs associated with biomass transportation
and processing.
Literature:
1.
Arvis J.F., Saslavsky D., Ojala L., Shepherd B., Busch C.,
and Raj A., Connecting to Compete 2014. Trade Logistics in the
Global Economy. The Logistics Performance Index and Its
indicators. http://www.worldbank.org/content/dam/Worldbank/d
ocument/Trade/LPI2014.pdf , 2014.
2.
Bartolacci M. R., Leblanc L. J., Kayikci Y., and Grossman
T. A., Optimization Modeling for Logistics: Options and
Implementations, Journal of Business Logistics, 2012, vol. 33,
no 2, pp. 118–127.
3.
Bazaras D.,
Įvadas į logistiką: mokomoji knyga, Vilnius:
Vilniaus Gedimino technikos universitetas, 2005.
4.
Braškienė L. Logistika. Vilnius: Vilniaus Universiteto
leidykla, 2009.
5.
Christopher M.,
Logistika ir tiekimo grandinės valdymas.
Vilnius: Eugrimas, 2007.
6.
Ebbekink M., and Lagendijk A., What’s Next in
Researching Cluster Policy: Place-Based Governance for
Effective Cluster Policy, European Planning Studies, 2013, vol.
21, no. 5, pp. 735-753.
7.
Faße A., Winter E., and Grote U., Bioenergy and rural
development: The role of agroforestry in a Tanzanian village
economy, Ecological Economics, 2014, vol. 106, no. 106, pp.
155-166.
8.
Gaweł A., and Jankowska B., Entrepreneurial Orientation
Versus the Sustainability and Growth of Business Clusters,
Przedsi biorstwo we wspó czesnej gospodarce-teoria i praktyka,
2012, vol. 1, no. 1, pp. 5-14.
9.
Grigoras G. and Scarlatache F., An assessment of the
renewable energy potential using a clustering based data mining
method. Case study in Romania, Energy, 2015, vol. 81, no. 81,
pp. 416-429.
10.
Hackl R., and Harvey S., Design Strategies for Integration
of Biorefinery Concepts at Existing Industrial Process Sites,
Process Design Strategies for Biomass Conversion Systems,
2016, pp. 77-102.
11.
Husmann K., and Rumpf S., and Nagel, J, Biomass
functions and nutrient contents of European beech, oak,
sycamore maple and ash and their meaning for the biomass
supply chain, Journal of Cleaner Production, 2018, vol. 172, no.
172, pp. 4044-4056.
12.
Kaygusuz K., Energy for sustainable development: key
issues and challenges. Energy Sources, Part B: Economics,
Planning, and Policy, 2007, vol. 2, no. 1, pp. 73-83.
13.
Kuula J., Neittaanmäki P., Pölönen I., and Tuovinen T.,
Mathematical model based IT tools for supporting the open
value forming and pricing of biomass at the renewable energy
sector, In Proceedings of NORDIC BIOENERGY 2011
Conference, 2011.
14.
Palšaitis R.,
Šiuolaikinė logistika, Vilnius: Technika, 2010.
15.
Saah D., Patterson T., Buchholz T., Ganz D., Albert D., and
Rush K., Modeling economic and carbon consequences of a shift
to wood-based energy in a rural ‘cluster’; a network analysis in
southeast Alaska, Ecological Economics, 2014, vol. 107, no.
107, pp. 287–298.
16.
Vitasek K., Supply chain management, Healthcare
Informatics: The Business Magazine for Information and
Communication Systems, 2013, vol. 17, no. 2, pp. 58–60.
17.
Walker G., What are the barriers and incentives for
community-owned means of energy production and use? Energy
Policy, 2008, vol. 36, no. 36, pp. 4401–4405.
18.
Yang Z., Hao P., and Cai J., Economic clusters: A bridge
between economic and spatial policies in the case of Beijing,
Cities, 2015, vol. 42, no. 42, pp. 171-185.
Primary Paper Section: A
Secondary Paper Section: AH
- 298 -