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Title: A two-stage stochastic aggregate production planning model with renewable energy prosumers,” in Proceedings of the 2021 Institute of Industrial and Systems Engineers (IISE) Virtual Conference, May 22-25, 2021, pp. 223-228.
This study presents a two-stage stochastic aggregate production planning model to determine the optimal renewable generation capacity, production plan, workforce levels, and machine hours that minimize a production system’s operational cost. The model considers various uncertainties, including demand for final products, machine and labor hours available, and renewable power supply. The goal is to evaluate the feasibility of decarbonizing the manufacturing, transportation, and warehousing operations by adopting onsite wind turbines and solar photovoltaics coupled with battery systems assuming the facilities are energy prosumers. First-stage decisions are the siting and sizing of wind and solar generation, battery capacity, production quantities, hours of labor to keep, hire, or layoff, and regular, overtime, and idle machine hours to allocate over the planning horizon. Second-stage recourse actions include storing products in inventory, subcontracting or backorder, purchasing or selling energy to the main grid, and daily charging or discharging energy in the batteries in response to variable generation. Climate analytics performed in San Francisco and Phoenix permit to derive capacity factors for the renewable energy technologies and test their implementation feasibility. Numerical experiments are presented for three instances: island microgrid without batteries, island microgrid with batteries, and grid-tied microgrid for energy prosumer. Results show favorable levelized costs of energy that are equal to USD48.37/MWh, USD64.91/MWh, and USD36.40/MWh, respectively. The model is relevant to manufacturing companies because it can accelerate the transition towards eco-friendly operations through distributed generation.  more » « less
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Author(s) / Creator(s):
; ;
Ghate, A.; Krishnaiyer, K.; Paynabar, K.
Date Published:
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Proceedings of the 2021 Institute of Industrial and Systems Engineers (IISE) Conference
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Medium: X
Sponsoring Org:
National Science Foundation
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