Net present value analysis of the economic production quantity

Disney, Stephen Michael; Warburton, Roger D.H.; Zhong, Qing Chang

doi:10.1093/imaman/dpt002

Cited by 6 publications

(4 citation statements)

References 11 publications

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“…Accordingly, if the cost of the initial battery is C 1 bat , cost of the secondary battery would be C 2 bat . With M as the lifetime of the initial batteries, the present worth of battery investment cost is as follows (Disney et al, 2013):…”

Section: System Costs 221 Investment Costsmentioning

confidence: 99%

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Optimal sizing of photovoltaic-battery system for peak demand reduction using statistical models

Nematirad,

Pahwa,

Natarajan

et al. 2023

Front. Energy Res.

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Due to increasing environmental concerns and demand for clean energy resources, photovoltaic (PV) systems are becoming more prevalent. Considering that in several instances, customers pay for both energy and power, PV installations not only must reduce the customers’ energy purchases but also lower their peak demand for maximum financial benefits. However, in many cases, the peak demand does not coincide with the peak of photovoltaic generation. To address this issue, excess energy generated during low-demand periods can be stored in a battery, which can then be used to meet peak demand. Determining the optimal size of photovoltaic and battery components while ensuring system performance and financial benefits is significantly challenging. This study proposes a novel statistical methodology for optimizing PV-battery system size. In the proposed method, the PV-battery system must meet peak demand thresholds with a specific probability. Further, cost and benefit functions are used for financial evaluation. Finally, Monte Carlo simulations, developed using time series clustering and a Bayesian model are utilized to assess system performance and financial feasibility.

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Section: System Costs 221 Investment Costsmentioning

confidence: 99%

“…The total annual operation and maintenance costs of a PVbattery system are an annuity and they need to be converted to the present worth as follows (Disney et al, 2013):…”

Section: Operation Maintenance and Insurance Costsmentioning

confidence: 99%

Optimal sizing of photovoltaic-battery system for peak demand reduction using statistical models

Nematirad,

Pahwa,

Natarajan

et al. 2023

Front. Energy Res.

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“…[16] concluded that the NPV has been widely used in several investment planning models. [17] enhanced the economic production quantity (EPQ) model by using Laplace transformation, analyzing cash flows from a NPV viewpoint and obtained an exact expression for the PV of the cash flows in the EPQ problem. [18] developed an alternative approach to conceptual design where a compound objective function based on the NPV and IRR aggregate performance metrics.…”

Section: Feasibility Studies Measuresmentioning

confidence: 99%

Economic and Feasibility Studies Using Particle Swarm Optimization for Petroleum and Gas Projects

2017

IJAERD

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“…[22], Van der Laan. [23], Disney et al [24] and Lin et al [25] highlight the importance of the time value of money. Therefore, taking the net present value into account is necessary in the analysis of manufacturer, agent and customer costs.…”

Section: Introductionmentioning

confidence: 99%

An integrated maintenance planning, warranty policy, technology level and pricing model considering time value of money in a three-level servicing contract

Salmasnia

Hatami

2021

Scientia Iranica

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A common way to address customer concerns in the post-warranty period is to provide an extended warranty. Although sometimes the manufacturer is reluctant to offer an extended warranty, an agent takes on this task to maintain market share. For this purpose, the warranty policy is presented as a three-level servicing contract with the objectives of maximizing the manufacturer's profit, agent's profit, and customer satisfaction. The model considers two approaches to control the number of product failures: (1) technology level used in manufacturing as an effective factor in product reliability; and (2) non-periodic maintenance activities to maintain the product reliability at an acceptable level. To calculate the costs imposed on each side of the contract more accurately, the time value of money is considered in the calculation of financial flows. To illustrate the effectiveness of the approach, three comparative studies are provided. The first one shows the impact of the presence of the agent and the provision of an extended warranty period, while the second one proves the importance of preventive maintenance to reduce costs and increase the interests of each side. The results of the last one shows the effect of considering time value of money in calculating cash flows.

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Net present value analysis of the economic production quantity

Cited by 6 publications

References 11 publications

Optimal sizing of photovoltaic-battery system for peak demand reduction using statistical models

Optimal sizing of photovoltaic-battery system for peak demand reduction using statistical models

Economic and Feasibility Studies Using Particle Swarm Optimization for Petroleum and Gas Projects

An integrated maintenance planning, warranty policy, technology level and pricing model considering time value of money in a three-level servicing contract

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