Biofuel Supply Agreement
Perfect coordination of the biofuel supply chain can be achieved. 08/07/2020 – Air Transat and SAF – Consortium sign Canada`s first Sustainable Aviation Fuel Acquisition Agreement (FAS) The table below contains publicly available information on aviation fuel removal agreements. In order to ensure the sustainable supply of agricultural raw materials for biofuel production and to improve the performance of the biofuel supply chain, coordination throughout the biofuels supply chain is examined in a random yield environment. Three types of co-ordination contracts are being examined: a cost-sharing contract for overproduction (OPC), a production risk-sharing contract (UPC) and a mixed contract (MC) with a Nash asymmetric trading model. Although a CPO and A UPC can correct farmers` overproduction and underproduction behaviour, the expected increase in profits cannot be achieved by the biofuel producer or farmers. The MC is feasible because it achieves an efficient supply chain that simultaneously respects supply chain optimization and the interests of all stakeholders involved. The proposed contracts are tested with data from the cassava-based biofuels industry in China. These results help practitioners and policy makers understand when and how coordination agreements can be implemented to achieve a sustainable supply of agricultural raw materials for biofuel production and the supply chain. An empirical study of China`s biofuel supply chain based on Cassava is under study.
Three types of coordination contracts for the biofuel supply chain are under consideration. It is possible to ensure a sustainable supply of agricultural raw materials for biofuel production. The effects on the development of the biofuel supply chain are present.