A Hierarchical Intermodal Network Optimization Model for the Gasification of Recycled Plastic in Southern Ontario: The Case of McKeil Marine

In this research, we apply the hierarchical fixed charge uncapacitated facility location model to optimize the supply chain network of a gasification plant. The model determines the optimal location of shredding facilities on the network that are required to supply plastic feedstock to the gasification plant in Hamilton, Ontario. To construct the model, we will determine an optimized transportation network for the gasification plant, which faces a fixed demand during the period of one-year. The transportation routes to the plant and the associated costs are determined with the use of geographic information systems software. Our research finds (1) the optimal number of shredding facilities and their locations (2) the production of each facility and allocation of demand in a one-year period and (3) an optimized transportation network that attempts to utilize intermodal transportation in order to minimize the cost function of the entire network. The model determines that transporting the plastic via truck and locating a single shredding facility in Hamilton is more cost effective than decoupling the shredding process from the plant or transporting the plastic via an alternative modality. This leads the author to the conclusion that the network’s scale is too small and that there is not a large enough volume of plastic flowing through the network to justify the utilization of an intermodal transportation network.