A LAGRANGE REVENUE MODEL FOR ETHANOL PRODUCTION FROM BIOMASS

Abstract

In this work, we modified a revenue model in order to handle the costing of Ethanol Production from Banana Biomass through a heuristic approach. The methodology of Lagrange multiplier that involves budgetary constraints with local search was employed to formulate Lagrange cost model as multi-item, multi-level capacitated revenue generation. The Lagrange multiplier are updated by using surrogate subgradient method that ensures the convergence of the approximate solution. A feasible solution of the original problem is constructed from the solution of the Lagrange multiplier problem at each iteration which is later improved by local search that changes the values of one or more of the variables at each time. The result obtained from the numerical experiment shows that by using the formulated model the producers of Ethanol stand to have optimal revenue which is 13.25% above the current market price.