Optimal management of bio-based energy supply chains under parametric uncertainty through a data-driven decision-support framework

This paper addresses the optimal management of a multi-objective bio-based energy supply chain network subjected to multiple sources of uncertainty. The complexity to obtain an optimal solution using traditional uncertainty management methods dramatically increases with the number of uncertain factors considered. Such a complexity produces that, if tractable, the problem is solved after a large computational effort. Therefore, in this work a data-driven decision-making framework is proposed to address this issue. Such a framework exploits machine learning techniques to efficiently approximate the optimal management decisions considering a set of uncertain parameters that continuously influence the process behavior as an input. A design of computer experiments technique is used in order to combine these parameters and produce a matrix of representative information. These data are used to optimize the deterministic multi-objective bio-based energy network problem through conventional optimization methods, leading to a detailed (but elementary) map of the optimal management decisions based on the uncertain parameters. Afterwards, the detailed data-driven relations are described/identified using an Ordinary Kriging meta-model. The result exhibits a very high accuracy of the parametric meta-models for predicting the optimal decision variables in comparison with the traditional stochastic approach. Besides, and more importantly, a dramatic reduction of the computational effort required to obtain these optimal values in response to the change of the uncertain parameters is achieved. Thus the use of the proposed data-driven decision tool promotes a time-effective optimal decision making, which represents a step forward to use data-driven strategy in large-scale/complex industrial problems.Peer ReviewedPostprint (published version

Optimization with multivariate conditional value-at-risk constraints

For many decision making problems under uncertainty, it is crucial to develop risk-averse models and specify the decision makers' risk preferences based on multiple stochastic performance measures (or criteria). Incorporating such multivariate preference rules into optimization models is a fairly recent research area. Existing studies focus on extending univariate stochastic dominance rules to the multivariate case. However, enforcing multivariate stochastic dominance constraints can often be overly conservative in practice. As an alternative, we focus on the widely-applied risk measure conditional value-at-risk (CVaR), introduce a multivariate CVaR relation, and develop a novel optimization model with multivariate CVaR constraints based on polyhedral scalarization. To solve such problems for finite probability spaces we develop a cut generation algorithm, where each cut is obtained by solving a mixed integer problem. We show that a multivariate CVaR constraint reduces to finitely many univariate CVaR constraints, which proves the finite convergence of our algorithm. We also show that our results can be naturally extended to a wider class of coherent risk measures. The proposed approach provides a flexible, and computationally tractable way of modeling preferences in stochastic multi-criteria decision making. We conduct a computational study for a budget allocation problem to illustrate the effect of enforcing multivariate CVaR constraints and demonstrate the computational performance of the proposed solution methods

Optimization with multivariate conditional value-at-risk constraints

For many decision making problems under uncertainty, it is crucial to develop risk-averse models and specify the decision makers' risk preferences based on multiple stochastic performance measures (or criteria). Incorporating such multivariate preference rules into optimization models is a fairly recent research area. Existing studies focus on extending univariate stochastic dominance rules to the multivariate case. However, enforcing multivariate stochastic dominance constraints can often be overly conservative in practice. As an alternative, we focus on the widely-applied risk measure conditional value-at-risk (CVaR), introduce a multivariate CVaR relation, and develop a novel optimization model with multivariate CVaR constraints based on polyhedral scalarization. To solve such problems for finite probability spaces we develop a cut generation algorithm, where each cut is obtained by solving a mixed integer problem. We show that a multivariate CVaR constraint reduces to finitely many univariate CVaR constraints, which proves the finite convergence of our algorithm. We also show that our results can be naturally extended to a wider class of coherent risk measures. The proposed approach provides a flexible, and computationally tractable way of modeling preferences in stochastic multi-criteria decision making. We conduct a computational study for a budget allocation problem to illustrate the effect of enforcing multivariate CVaR constraints and demonstrate the computational performance of the proposed solution methods

Economic and environmental strategies for process design

This paper first addresses the definition of various objectives involved in eco-efficient processes, taking simultaneously into account ecological and economic considerations. The environmental aspect at the preliminary design phase of chemical processes is quantified by using a set of metrics or indicators following the guidelines of sustainability concepts proposed by . The resulting multiobjective problem is solved by a genetic algorithm following an improved variant of the so-called NSGA II algorithm. A key point for evaluating environmental burdens is the use of the package ARIANE™, a decision support tool dedicated to the management of plants utilities (steam, electricity, hot water, etc.) and pollutants (CO2, SO2, NO, etc.), implemented here both to compute the primary energy requirements of the process and to quantify its pollutant emissions. The well-known benchmark process for hydrodealkylation (HDA) of toluene to produce benzene, revisited here in a multiobjective optimization way, is used to illustrate the approach for finding eco-friendly and cost-effective designs. Preliminary biobjective studies are carried out for eliminating redundant environmental objectives. The trade-off between economic and environmental objectives is illustrated through Pareto curves. In order to aid decision making among the various alternatives that can be generated after this step, a synthetic evaluation method, based on the so-called Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) (), has been first used. Another simple procedure named FUCA has also been implemented and shown its efficiency vs. TOPSIS. Two scenarios are studied; in the former, the goal is to find the best trade-off between economic and ecological aspects while the latter case aims at defining the best compromise between economic and more strict environmental impact

Evolutionary multiobjective optimization of the multi-location transshipment problem

We consider a multi-location inventory system where inventory choices at each location are centrally coordinated. Lateral transshipments are allowed as recourse actions within the same echelon in the inventory system to reduce costs and improve service level. However, this transshipment process usually causes undesirable lead times. In this paper, we propose a multiobjective model of the multi-location transshipment problem which addresses optimizing three conflicting objectives: (1) minimizing the aggregate expected cost, (2) maximizing the expected fill rate, and (3) minimizing the expected transshipment lead times. We apply an evolutionary multiobjective optimization approach using the strength Pareto evolutionary algorithm (SPEA2), to approximate the optimal Pareto front. Simulation with a wide choice of model parameters shows the different trades-off between the conflicting objectives

Multi-objective optimal design of inerter-based vibration absorbers for earthquake protection of multi-storey building structures

In recent years different inerter - based vibration absorbers (IVAs) emerged for the earthquake protection of building structures coupling viscous and tuned - mass dampers with an inerter device . In the three most popular IVAs the inerter is functioning either as a motion amplifier [tuned - viscous - mass - damper (TVMD) configuration], mass amplifier [tuned - mass - damper - inerter (T MDI) configuration], or mass substitute [tuned - inerter - damper (TID) configuration]. Previous work has shown that through proper tuning , IVAs achieve enhanced earthquake - induced vibration suppression and/or weight reduction compared to conventional dampers/absorbers , but at the expense of increased control forces exerted from the IVA to the host building structure . These potentially large forces are typically not accounted for by current IVA tuning approaches. In this regard, a multi-objective IVA design approach is herein developed to identify the compromise between the competing objectives of (i) suppressing earthquake-induced vibrations in buildings, and (ii) avoiding development of excessive IVA (control) forces, while, simultaneously, assessing the appropriateness of different modeling assumptions for practical design of IVAs for earthquake engineering applications . The potential of the approach to pinpoint Pareto optimal IVA designs against the above objectives is illustrated for different IVA placements along the height of a benchmark 9-storey steel frame structure. Objective (i) is quantified according to current performanc e-based seismic design trends using first-passage reliability criteria associated with the probability of exceeding pre-specified thresholds of storey drifts and/or floor accelerations being the engineering demand parameters (EDPs) of interest . A variant, simpler, formulation is also considered using as performance quantification the sum of EDPs variances in accordance to traditional tuning methods for dynamic vibration absorbers. Objective (ii) is quantified through the variance of the IVA force. It is found that reduction of IVA control force of up to 3 times can be achieved with insignificant deterioration of building performance com pared to the extreme Pareto optimal IVA design targeting maximum vibration suppression , while TID and TMDI a chieve practically the same building performance and significantly outperform the TVMD. Moreover, it is shown that the simpler variant formulation may provide significantly suboptimal reliability performance . Lastly, it is verified that the efficacy of optimal IVA designs for stationary conditions is maintained for non-stationary stochastic excitation model capturing typical evolutionary features of earthquake excitations

Spatial optimization for land use allocation: accounting for sustainability concerns

Land-use allocation has long been an important area of research in regional science. Land-use patterns are fundamental to the functions of the biosphere, creating interactions that have substantial impacts on the environment. The spatial arrangement of land uses therefore has implications for activity and travel within a region. Balancing development, economic growth, social interaction, and the protection of the natural environment is at the heart of long-term sustainability. Since land-use patterns are spatially explicit in nature, planning and management necessarily must integrate geographical information system and spatial optimization in meaningful ways if efficiency goals and objectives are to be achieved. This article reviews spatial optimization approaches that have been relied upon to support land-use planning. Characteristics of sustainable land use, particularly compactness, contiguity, and compatibility, are discussed and how spatial optimization techniques have addressed these characteristics are detailed. In particular, objectives and constraints in spatial optimization approaches are examined