LAUSR

We consider a problem of siting compact scale biomass recycling units in residential districts, where residents can be motivated to participate in the recycling program when offered with sufficient monetary incentives. Available data samples of the residents’ reservation incentive levels are used directly to estimate the recycling participation rate in the model, which is solved for the optimal recycling unit locations and incentive-to-offer. We propose a novel approximation of the participation rate estimator that can significantly improve the tractability and scalability of the resulting mixed integer optimization model. Furthermore, we consider the effects of feedstock impurity on the economic feasibility of the recycling system, and extend our model to develop solutions that can achieve specified profit targets as well as possible in the presence of feedstock impurity. Finally, computational studies show the efficiency of the proposed model and solution approach, and give positive demonstrations of our proposed model in providing the requisite decision support in realistic recycling systems design problems.