Market-Based Electric Power Generation Planning with Emission Control

Recently, there has been an increasing emphasis on environmental concerns in the electric power industry, especially air pollution. Under this circumstance, we formulate a generation planning model that considers not only the conventional production costs, but also the costs related to air pollution. In particular, we will focus on sulfur dioxide emission which is heavily regulated by Environmental Protection Agency via emission permits. For this particular type of pollutant, we present a generation planning model consisting of an annual strategic model and a weekly tactical model. An illustrative numerical example is provided

Workforce Scheduling with Costs and Ergonomic Considerations

In this paper, we develop a workforce scheduling methodology, which takes both financial costs and ergonomic factors such as the avoidance of backward rotations and consecutive night shifts into consideration. First, we obtain relative weights for each complete schedule called a scheme by applying analytic hierarchy process (AHP) under financial costs and ergonomic factors criteria. Next, we formulate an integer program with weights from AHP to select the optimal set of schemes. In addition, we show how the ergonomic aspects of a given set of schemes can be improved via an assignment formulation when the planning horizon repeats itself

Coordinating forward and reverse flows of products for a manufacturer-retailer supply chain model

In this paper, we formulate and analyze a manufacturer-retailer supply chain model with product remanufacturing. This model takes into account both forward flow of the new product as well as reverse flow of the used product. Specifically, we assume that the manufacturer can control the wholesale price of the new product as well the transfer price of the used product from the retailer while the retailer can control the retail price of the new product and the collecting price of the used product. Under this assumption, we compare and contrast the coordinated scenario vs. the uncoordinated scenario. Managerial insights and a numerical example are illustrated

Selection of Products and Prices in Manufacturing and Remanufacturing Environment

In this paper, we consider a manufacturer who produces both new and remanufactured products facing a group of heterogeneous customers who self-select their optimal choices of products. Under such circumstances, we formulate a mathematical programming model that determines the products, prices, and acquisition prices for used products. Based on this model, we will discuss conditions under which remanufacturing can be encouraged

Expansion planning for transmission network under demand uncertainty: A real options framework

In recent years, there has been much expectation that transmission expansion planning should address ever increasing demands for transmission services under significant and complex economic and regulatory uncertainties. In this article, toward meeting the aforementioned expectation, we develop and analyze a real options framework that provides the valuation of a transmission owner’s option to expand in his or her network. What distinguishes our framework from the extant literature is that the evolution of the demand follows a geometric Brownian motion process, it explicitly accounts for the physical flow of the electric power economically manifested as the locational marginal prices, and it shows how the values of the expansion options can be determined in the transmission network. Furthermore, our framework shows how to value an option to expedite or delay can be determined given that a specific expansion is planned. An extensive numerical example is presented to illustrate the key features of our framework

Engineering Economic Valuation of Ready-Made Design for Transportation Vehicles

Nowadays, transportation vehicles are upfront equipped with fuel saving devices such as winglets in airplanes so as to reduce fuel consumption. By ready-made design, we mean this approaching of equipping upfront on transportation vehicles. In this article, under the reasonable assumption that the fuel cost is volatile and follows a geometric Brownian motion (GBM) process, we use the theory of stochastic optimal control (1) to determine the threshold of fuel cost to decommission such a transportation vehicle, and (2) to determine the engineering economic valuation of such a design. For the threshold and the valuation, we proceed to obtain the analytical solutions to our approach, followed by sensitivity analyses as well as the derivation of the total expected operation lifetime until decommissioning. Finally, for the managerial insights and economic implications, we present an extensive numerical example with numerous empirical data sets from publicly available sources. For instance, as the fuel cost becomes more uncertain, economically rational decision makers will defer the decommissioning of a vehicle

Logistic Depot Planning under Repair and Maintenance Cost Uncertainties under Changing Climate

With the changing climates, numerous broadly defined logistical depots ranging from air and sea ports to bus and train stations all suffer from volatile repair and maintenance costs that are fluctuating and on average increasing over time. At the same time, human-made (i.e., typically governments) policies often influences the repair and maintenance costs as well (e.g., the environmentally friendly disposal policies for the repair and maintenance components). Under these circumstances, we first construct stochastic control models based on binomial lattices when the repair and maintenance costs are following geometric Brownian motion processes while the human-made policies follow Poisson jump processes. From the subsequent analyses, we aim to produce economic implications and managerial insights so as to enhance decision and policy making such as whether and when to expand, contract, mothball, and/or decommission such logistical depots. By conducting a numerical study on the airport re-location, we empirically show how to derive the most economically rational strategy, and to determine the optimal re-location time

Allocation and Inventory Policies for Reels in Printed Circuit Board Assemblies

In Printed Circuit Board (PCB) assemblies, various types of reels loaded with different components are extensively utilized. We examine the inventory and allocation policies across assembly lines when the number and size of the reels substantially affect the assembly efficiency (e.g., when the number of available slots in a chip shooter is relatively limited). Critical features of the policies are illustrated via numerical examples

Integrating Communication and Engineering Skills in an Industrial Engineering Curriculum Based on Outcome Assessment Results

To bridge the gap between technical and communication skills of industrial engineering students at Iowa State University, faculty have focused assessment-driven continuous improvement in the curriculum on the integration of communication and engineering skills. Written, verbal, and non-verbal communication skills are addressed through the core communication process (Analysis, Formulation, Creation, Delivery, and Assessment): the focus of a new engineering communications course. This paper describes the creation of this course, including the impetus for inception, course content, structure, and outcome-based learning activities. Student growth and survey results are examined. Long term impact expectations and assessment plans are described