Optimal distillers distribution planning in an ethanol supply chain

Abstract

With the increasing growth of the ethanol industry, the number of co-products is also expanding at a rapid rate. These co-products, namely distillers, can be used as cattle feed in feedlots. Currently, the major feed for cattle is corn, but if distillers are marketed successfully and farmers are educated about their usefulness and how to store them, then they could be remarkably successful in the feedstock market. Some issues associated with distillers need to be addressed and will be discussed in the next section. Since producing distillers does not require building new plants or purchasing new machinery, they are simply a welcome co-product (or by-product) of corn fermentation during ethanol production. Ethanol owners could make good revenue by marketing distillers, since they produce 3.2 million metric tons of dried distillers grains plus solubles annually.