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Energy-aware Economic Production Quantity model with variable energy pricing

Author

Listed:
  • Farnaz Ghazi Nezami

    (Kettering University)

  • Mojtaba Heydar

    (University of Newcastle)

Abstract

In this paper, an energy-aware Economic Production Quantity (EPQ) model is presented to determine optimum production run length and batch size with respect to variable energy cost. Here, variable unit production cost includes energy consumption charge which is a function of production time and time-of-use, and alternates between two prices during peak and off-peak hours. This paper addresses the above integration in order to minimize the overall cost of the system. In the first phase of this study, a new scenario-based framework is proposed to find the optimal value of production time. In the second phase, a general mixed integer nonlinear programming (MINLP) model is developed for the given framework. The energy cost defined by the framework and mathematical model depends on the number of peak periods during the production period and is calculated using floor functions. The MINLP is solved numerically and analytically, and a closed form solution is obtained for the production run length. The model is analyzed for different scenarios and the results are discussed.

Suggested Citation

  • Farnaz Ghazi Nezami & Mojtaba Heydar, 2019. "Energy-aware Economic Production Quantity model with variable energy pricing," Operational Research, Springer, vol. 19(1), pages 201-218, March.
    • Handle: RePEc:spr:operea:v:19:y:2019:i:1:d:10.1007_s12351-016-0284-3
    DOI: 10.1007/s12351-016-0284-3
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    References listed on IDEAS

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    1. Duan Li & Xiaoling Sun, 2006. "Nonlinear Integer Programming," International Series in Operations Research and Management Science, Springer, number 978-0-387-32995-6, April.
    2. Leung, Kit-Nam Francis, 2007. "A generalized geometric-programming solution to "An economic production quantity model with flexibility and reliability considerations"," European Journal of Operational Research, Elsevier, vol. 176(1), pages 240-251, January.
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    4. Narayan Singh & Bindu Vaish & S.R. Singh, 2012. "An economic production lot-size (EPLS) model with rework and flexibility under allowable shortages," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 5(1), pages 104-122.
    5. Vittaldas V. Prabhu & Damien Trentesaux & Marco Taisch, 2015. "Energy-aware manufacturing operations," International Journal of Production Research, Taylor & Francis Journals, vol. 53(23), pages 6994-7004, December.
    6. Guohua Wan & Xiangtong Qi, 2010. "Scheduling with variable time slot costs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 57(2), pages 159-171, March.
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    Cited by:

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    3. Shima Javanmard & Behrouz Afshar-Nadjafi & Seyed Taghi Akhavan Niaki, 2022. "A bi-objective model for scheduling of multiple projects under multi-skilled workforce for distributed load energy usage," Operational Research, Springer, vol. 22(3), pages 2245-2280, July.
    4. Amir Hossein Nobil & Amir Hosein Afshar Sedigh & Behrouz Afshar-Nadjafi, 2020. "Lot-sizing problem for a defective processing system with categorized items, backordering and pricing policy," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(4), pages 255-265, August.

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