**2. Biofuel Supply Chain Planning and Management**

The biofuel supply chain consists of biomass production, pre-treatment, storage and biofuel conversion. Each operation either takes place at the biomass production sites, or at another facility that is being connected to the biomass production site through different transportation mode. Figure 1 shows the flow chart of the biofuel supply chain. The biofuel supply chain is distinguished into two segments: upstream and downstream, with the segment bioenergy conversion placed interchangeably between the two, depending on whether biomass feedstock or the final product biofuel is traded. In this section, methods used in biofuel supply chain planning will be presented based on two categories: the upstream supply chain decision-making model and the downstream trade model. It is noted that not all bioenergy produced is traded; in some cases, bioenergy is utilised locally. To distinguish between supply chain management model used in this study downstream generally refers to traded bioenergy with some publications considering local consumption too.

**Figure 1.** An example of a biofuel supply chain.
