2015 Informs Annual Meeting

WA62

INFORMS Philadelphia – 2015

WA60 60-Room 111A, CC Electricity Access in Developing Countries Sponsor: ENRE – Energy I – Electricity Sponsored Session Chair: Valerie Thomas, Professor, Georgia Institute of Technology, 755 Ferst Drive, NW, Atlanta, United States of America, valerie.thomas@isye.gatech.edu 1 - The Case for Distributed Energy in the Developing World Todd Levin, Energy Systems Engineer, Argonne National Laboratory, 9700 S Cass Ave, Lemont, IL, 60439, United States of America, tlevin@anl.gov, Valerie Thomas In developing countries where infrastructure is underdeveloped, there may be potential for decentralized technologies to leapfrog the centralized electrification model. We present a service based economic analysis that incorporates the true, unsubsidized cost of energy access in rural regions. We show that distributed options may be cost-effective if consumption is modest and suggest that some grid subsides may be more effectively channeled to support distributed approaches to energy access. 2 - Risk-aware Control of Solar Micro-grids Carlos Abad, Columbia University, 500 W 120th St. Rm 321, New York, NY, 10027, United States of America, carlos.abad@columbia.edu, Garud Iyengar, Vijay Modi Providing power to widely spread out communities using the conventional power grid is not economically feasible. The most attractive alternative source of affordable energy for these communities is solar micro-grids. We discuss risk- aware robust methods to optimally size and operate micro-grids in the presence of uncertain demand and uncertain generation. These algorithms help system operators to increase their revenue while making their systems more resilient to inclement weather conditions. WA61 61-Room 111B, CC Research in Environmentally Sustainable and Socially Responsible Operations Sponsor: ENRE – Environment I – Environment and Sustainability Sponsored Session Chair: Jason Nguyen, University of Minnesota, 321 19th Ave S, Minneapolis, MN, 55455, United States of America, nguy1762@umn.edu 1 - Perceived Operational Impacts and Investment in Carbon Abatement Chien-ming Chen, Nanyang Technological University, 50 Nanyang Avenue, Singapore, Singapore, cmchen@ntu.edu.sg, Maria Montes-sancho This study examines how the perceived operational impacts from reducing carbon emissions are associated with long-term investment in environmental technology portfolios. We examine our hypotheses based on recent carbon disclosure data. 2 - Evaluating Alternative Strategies for Fostering Responsibility Among Suppliers Avijit Raychaudhuri, PhD Candidate, Nanyang Business School, Nanyang Technological University, 50 Nanyang Avenue, South We look at global supply chains which comprise suppliers of varying degrees of responsibility. In order to promote responsibility in such supply chains, global buyers generally follow a strategy of dual investment in supplier responsibility audit and supplier improvement. We evaluate the relative profitability of these strategies under different scenarios. We also analyze how the buyer’s optimal investment policy affects supply chain responsibility. 3 - A Bilevel Optimization Model for Bioenergy Contract Price Determination Lizhi Wang, Associate Professor, Iowa State University, 3016 Black Engineering, Ames, IA, 50011, United States of America, lzwang@iastate.edu, Liu Su, Guiping Hu, Emily Heaton We study farmers crop selection problem in the face of crop price uncertainty, yield uncertainty, and environmental concerns. We then propose a bilevel optimization to help bioenergy companies determine appropriate contract prices to encourage farmers to switch from conventional crops to energy crops. Spine S3-01B-73, Singapore, 639798, Singapore, avijit001@e.ntu.edu.sg, Fang Liu, S Viswanathan

4 - Net-zero Carbon Manufacturing and Supply Chain Operations: A Fantasy or a Possibility?

Tongdan Jin, Texas State University, 601 University Drive, San Marcos, United States of America, tj17@txstate.edu, An Pham, Fei Sun

We address two fundamental questions confronted by manufacturing and supply chain design: 1) is it cost-effective to deploy onsite wind and solar power to achieve net-zero carbon environmental performance? and 2) how to design a reliable onsite energy system to meet the variable demand without storage devices? We conclude that zero carbon operations are achievable at affordable cost provided the local wind speed is above 5 m/s or the overcast days are less than 35% of a year. WA62 62-Room 112A, CC Energy and Supply Chain Management Cluster: Energy Systems: Design, Operation, Reliability and Maintenance Invited Session Chair: Yao Zhao, Rutgers University, 1 Washington street, Newark, NJ, 07102, United States of America, yaozhao@andromeda.rutgers.edu 1 - Energy Supply Chain: Insights, Security, and Sustainability Kwon Gi Mun, PhD Candidate, Rutgers University, SCM, Rutgers Business School, 1 Washington Park, Newark, NJ, 07102, United States of America, kwongimun@gmail.com, Yao Zhao, Endre Boros, Rafique Raza We test and design heuristics and an optimal decision model for introducing new strategies to design energy supply network. A main contribution is that well- formulated energy supply network can explain how to ensure energy supply and energy security. We consider all of possible T&D technology such as HVAC/HADC together, and we found that a design of energy supply network may cause an inefficient supply of electricity unless it is optimized with an integrated network. 2 - Expected Value and Chance Constrained Stochastic Unit Commitment Ensuring Wind Power Utilization Chaoyue Zhao, Oklahoma State University, 322G Engineering North, Stillwater, OK, United States of America, chaoyue.zhao@okstate.edu In this talk, we propose an expected value and chance constrained stochastic optimization approach for the unit commitment problem with uncertain wind power output. A combined SAA framework that considers both the expected value and the chance constraints is proposed to construct statistical upper and lower bounds for the optimization problem. Finally,a revised IEEE 118-bus system is studied to show the scalability of the proposed model and algorithm. 3 - Energy Supply Chain: Future Energy Security Raza Rafique, Assistant Professor, Lahore University of Management Science, Suleman Dawood School of Business, Lahore, 54600, Pakistan, raza.ali@lums.edu.pk, Yao Zhao, Kwon Gi Mun Electricity crisis is a major hindrance towards economic growth of Pakistan and poses a serious national security threat to the country. The crisis has resulted into political turmoil and social instability. We have provided a framework to address energy supply chain design. The study shows great potential and provide guidelines to ensure future energy security of Pakistan. 4 - Data-Oriented Decision Making in Demand Response Weiwei Chen, Assistant Professor, Rutgers University, Rutgers Business School, Newark, NJ, 07102, United States of America, wchen@business.rutgers.edu Demand response (DR) programs have emerged among electric utilities to reduce peak electricity demand and enhance customer satisfaction. A critical issue is to accurately estimate the customers’ baseline power consumptions and the load reduction. A cohort based approach is introduced to improve the estimation accuracy utilizing customer historic data. Then, methods to manage various DR events considering exogenous information are developed to optimize the expected savings for utility companies.

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