Energy Implications in the Single-Vendor Single-Buyer Integrated Production Inventory Model

Zanoni, Simone; Bettoni, Laura; Glock, C. H.

doi:10.1007/978-3-642-40352-1_8

Cited by 7 publications

(3 citation statements)

References 7 publications

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“…The need to consider the entire supply chain (see section 3.2 for a definition of supply chains) when working with improved energy efficiency [24], reduced energy use [25], reduced environmental impact [26][27][28] and improved sustainability (environmental, economic and social) [24,29,30] has been highlighted in previous research. The importance of considering the entire supply chain and lifecycle of products has also been recognised by aluminium associations at Swedish [31], European [10] and international [32] levels.…”

Section: Motivation For Researchmentioning

confidence: 99%

Improved Energy Efficiency in the Aluminium Industry and its Supply Chains

Haraldsson

2020

Linköping Studies in Science and Technology. Dissertations

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Energy is an essential resource in the daily lives of humans. However, the extraction and use of energy has an impact on the environment. The industrial sector accounts for a large share of the global final energy use and greenhouse gas (GHG) emissions. The largest source of industrial GHG emissions is energy use. The production and processing of aluminium is energy-and GHG-intensive, and uses significant amounts of fossil fuels and electricity. At the same time, the global demand for aluminium is predicted to rise significantly by the year 2050. Improved energy efficiency is one of the most important approaches for reducing industrial GHG emissions. Additionally, improved energy efficiency in industry is a competitive advantage for companies due to the cost reductions that energy efficiency improvements yield. The aim of this thesis was to study improved energy efficiency in the individual companies and the entire supply chains of the aluminium industry. This included studying energy efficiency measures, potentials for energy efficiency improvements and energy savings, and which factors inhibit or drive the work to improve energy efficiency. The aim and the research questions were answered by conducting a literature review, focus groups, questionnaires and calculations of effects on primary energy use, GHG emissions, and energy and CO2 costs. This thesis identified several energy efficiency measures that can be implemented by the individual companies in the aluminium industry and the aluminium casting foundries. The individual companies have large potentials for improving their energy efficiency. Energy efficiency measures within the electrolysis process have significant effects on primary energy use, GHG emissions, and energy and CO2 costs. This thesis showed that joint work between the companies in the supply chains of the aluminium industry is needed in order to achieve further energy efficiency improvements compared to the companies only working on their own. The joint work between the companies in the supply chain is needed to avoid sub-optimisation of the total energy use throughout the entire supply chain. Better communication and closer collaboration between all the companies in the supply chain are two of the most important aspects of the joint work to improve energy efficiency. An energy audit for the entire supply chain could be conducted as a first step in the joint work between the companies in the supply chains. Another important aspect is to increase the use of secondary aluminium or remelted material waste rather than primary aluminium. vii To my parents, brother and friends viii "Even the finest sword plunged into salt water will eventually rust"-Sun Tzu "He that breaks a thing to find out what it is, has left the path of wisdom"-J.R.R. Tolkien "All we have to decide is what to do with the time that is given us"-J.R.R. Tolkien "It's the nature of time that the old ways must give in"-Sabaton ix Appended papers This thesis is based on the work described in the following papers. The papers are not ...

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Section: Motivation For Researchmentioning

confidence: 99%

Improved Energy Efficiency in the Aluminium Industry and its Supply Chains

Haraldsson

2020

Linköping Studies in Science and Technology. Dissertations

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“…Moreover, some contributions proposed the integration of the energy flow as an extension of the economic order/production quantity (EOQ/EPQ) and the joint economic lot size (JELS) models from the inventory theory research stream, in which the energy costs are included in the analyses and the total cost is minimized. Zanoni et al [66] studied a single-vendor single-buyer integrated productioninventory system and explicitly considered energy use. The energy consumption was weighted with a cost factor and evaluated in addition to classical production-inventory costs.…”

Section: Additional Flow and Costmentioning

confidence: 99%

Supply Chain Management for Improved Energy Efficiency: Review and Opportunities

2017

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Energy efficiency represents a key resource for economic and social development, providing substantial benefits to different stakeholders, ranging from the entities which develop energy efficient measures to everyone in society. In addition to cost savings, multiple benefits can be achieved by supporting a better alignment between energy issues and strategic business priorities: e.g., improved competitiveness, profitability, quality, etc. Thus, energy efficiency can be a strategic advantage, not just a marginal issue, for companies. However, most firms, especially small and medium enterprises (SMEs), face many problems and, in some cases, hostility when trying to effectively implement energy efficiency actions. The most dominant barriers are the access to capital and the lack of awareness (especially in terms of life cycle cost effects). The supply chain viewpoint represents one of the main opportunities for overcoming those barriers and improving energy performance even for weaker companies. Since the current literature on energy efficiency and practical approaches to ensure energy efficiency mainly focus on energy performance on a single-firm basis, this paper aims to provide a systematic review of papers on the integration of energy efficiency in supply chain design and management published in academic journal, thereby defining potential research streams to close the gaps in the literature. A number of literature reviews have been published focusing on specific aspects of sustainable or on green supply chain management; however, to the best of our knowledge, no review has focused on the energy efficiency issue. Firstly, the present paper shows how considering energy consumption in supply chain management can contribute to more energy-efficient processes from a systemic point of view. Then, the review methodology used is defined and the sampled papers are analyzed and categorized based on the different approaches they propose. From these analyses, potential future research streams are outlined.

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“…The SEC of the production process can be approximated and defined as a power function of the production rate, P, as follows [19]:…”

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confidence: 99%

Energy Efficiency Investments in Industry with Uncertain Demand Rate: Effects on the Specific Energy Consumption

2019

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The term "energy efficiency" covers a wide scope and it is affected by a lack of clarity. To overcome this issue, quantitative measures should be defined and evaluated for each unit of product or process considered. These quantitative indicators are necessary to support and evaluate energy efficiency improvements in industry, by allowing to (i) monitor the energy performance, and (ii) perform benchmarking analyses with best available techniques or similar processes. The specific energy consumption (SEC), i.e., the amount of energy consumed per unit of product/output, is the most commonly used index. Because of the uncertain demand faced by companies, production processes run at a rate that can vary within a certain range, to which correspond a different utilization of plants. Energy efficiency investments can be categorized in accordance to how they affect the SEC: i.e., the first group of investments has the same effects for each production rate (e.g., replacement of dated electric motors with new technologies), while the other has different effects for different ranges of production rate (e.g., installation of an inverter). The present work proposes a novel decision model for supporting the evaluation of the more suitable energy efficiency investment in an industrial context where the demand is uncertain. A numerical example based on a case study from the aluminum industry is then proposed in order to highlight the relevance of the problem discussed and to evaluate the behavior of the models in different scenarios characterized by different load factors. From the results, it evinced that the return of the investment strongly depends on the range of production rate and, thus, on the demand variability.

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Energy Implications in the Single-Vendor Single-Buyer Integrated Production Inventory Model

Cited by 7 publications

References 7 publications

Improved Energy Efficiency in the Aluminium Industry and its Supply Chains

Improved Energy Efficiency in the Aluminium Industry and its Supply Chains

Supply Chain Management for Improved Energy Efficiency: Review and Opportunities

Energy Efficiency Investments in Industry with Uncertain Demand Rate: Effects on the Specific Energy Consumption

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