Models for production planning under power interruptions

Latifoglu, Cagri; Belotti, Pietro; Snyder, Lawrence

doi:10.1002/nav.21547

Cited by 8 publications

(4 citation statements)

References 38 publications

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“…Latifoglu et al [22] presented an optimization model for aggregate production planning under the assumption that electricity supply is subject to uncertain interruptions caused by participation in uninterruptible load contracts. The objective was to minimize the cost of electricity used in production by providing a robust production plan to guarantee demand satisfaction in all possible outage scenarios.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Model for Integrating the Electricity Cost Consumption and Power Demand into Aggregate Production Planning

et al. 2022

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The constant increases in electricity tax costs and the mandatory contracting of power demand in advance by companies connected to the high-voltage electrical system drive organizations to improve energy planning in their production processes. In addition, market uncertainties make only stochastic methods insufficient for forecasting future production demand. To fill this gap, this study proposes a model that integrates the cost with electricity consumption and power demand into the aggregate production planning, considering the market uncertainties. The model was empirically applied in the food industry, considering a family of potato chips products. From the collected data, a demand forecast was carried out for a later realization of the aggregate planning, using the Holt–Winters forecast model. Before modeling, the new energy demand was calculated, and finally, the model solution verification was performed. In the case study, after application, it was possible to reduce two workers and a cost reduction of R$ 14,288.00. Moreover, the proposal managed to define a power demand that minimized the costs of electric energy and the total costs of the aggregate production planning.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Model for Integrating the Electricity Cost Consumption and Power Demand into Aggregate Production Planning

et al. 2022

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“…The second type considered the number of times the load was reduced or interrupted. In the article by [65], a robust optimization approach was presented in which uncertain power interruptions were included in aggregate production planning. A constraint was integrated that limited the number of such power interruptions to a certain value.…”

Section: Ecological Consideration Of Load Managementmentioning

confidence: 99%

Energy-Oriented Production Planning in Industry: A Systematic Literature Review and Classification Scheme

2021

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Scarcity of resources, structural change during the further development of renewable energy sources, and their corresponding costs, such as increasing resource costs or penalties due to dirty production, lead industrial firms to adapt ecological actions. In this regard, research on energy utilization in production planning has received increased attention in the last years, resulting in a large number of research articles so far. With the paper at hand, we review the literature on energy-oriented production planning. The aim of this study is to derive similar core issues and related properties along energy-oriented models within hierarchical production planning. For this, we carry out a systematic literature review and analyze and synthesize 375 research articles. We classify the underlying literature with a novel two-dimensional classification scheme and identify three key topics and five frequently found characteristics, which are presented in detail throughout this article. Based on these results, we state several potentials for further research.

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“…Nevertheless, most of past studies looked at management in a single power plant. For example, Latifoğlu et al (2013) created a production model of electric power generation under given certain assumptions and interruption scenarios to reduce the cost of producing electricity and to ensure customer satisfaction. A robust framework using heuristic procedure was also developed, and a computational experiment was conducted to validate the model.…”

Section: Strategic and Operational Management In Power Plantsmentioning

confidence: 99%

“…Some of them developed the managerial and production strategies for power plants (Huang et al, 2004;Lazzaretto & Carraretto, 2006;). While, some of them investigated the problems faced by the power plants and proposed the planning (Cerri et al, 2009;Kragelund et al, 2012), and built the production models under assumptions (Latifoğlu et al, 2013).…”

Section: Consideration Of the Findings In Light Of Existing Researchesmentioning

confidence: 99%

Economic dispatch management of electric power plants for profit maximization

Chanjirawittaya

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The key strategy of power plant business in the deregulated electricity supply industry is to maintain profitability, especially for a private energy company that allows general public to take part in investment for business expansion. The right strategy move is to maximize profit from selling electricity and steam, at the same time fund intensive research and development programs to seek for new alternative energy in order to supplant limited fuels and lower cost of production. The corporate annual report revealed that the major source of revenue comes from the sales of electricity and steam; however, profit has continually declined over the past few years. Decreasing profit was partially due to external effects, such as monopolized pricing determination and volatile economic factors. The company is not allowed to proportionally adjust the prices of electricity and steam to changes in such effects. The executives identified that the main cause of decreases in profit is from independent production and operations management without economic dispatch applications among the power plants. Consequently, the company had to excessively stock up fuels and schedule unplanned maintenance, which resulted in lower productivity and incapability to deliver some outputs to the customer. A spreadsheet-based program was developed to help make a small-scaled managerial decision, how much electricity and steam should be generated and sold to each customer group during periods of peak hours and off-peak hours to achieve maximum profit without violating the sales contract agreements. Several quantitative determination processes for unit cost, prices and profits were constructed and later embedded in the spreadsheet program. The mathematical linear programming model for optimizing total profit during each of the periods was formulated. Two feasible scenarios for each of the periods were comparatively simulated to see the best alternative towards profit maximization. The simulation results show that the optimal scenario is applicable to both periods. Although some electricity demand could not be fully satisfied resulting in penalty, this scenario provided the total maximum profit and was able to satisfy the power systems and the legal constraints while not severely violating the sales contract agreements relative to another scenario. The results from sensitivity analysis of exchange rate, coal price, fuel oil price, coal-to-biomass fuel ratio and fuel transfer charge also show that all of these factors have strong effects on profitability, allowing to examine a series of possible changes that will not affect the optimal solution of economic dispatch management.

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Models for production planning under power interruptions

Cited by 8 publications

References 38 publications

Model for Integrating the Electricity Cost Consumption and Power Demand into Aggregate Production Planning

Model for Integrating the Electricity Cost Consumption and Power Demand into Aggregate Production Planning

Energy-Oriented Production Planning in Industry: A Systematic Literature Review and Classification Scheme

Economic dispatch management of electric power plants for profit maximization

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