2015 Informs Annual Meeting

WE59

INFORMS Philadelphia – 2015

3 - Optimal Coordination of Power Generation Scheduling with an EV Support Service System Yuping Huang, 12800 Pegasus Dr. RM 320, Orlando, Fl, 32817, United States of America, ypnghuang@gmail.com, Qipeng Zheng As electric vehicles become more mainstream, the capacitated electric vehicles can be connected to the local electric grids and employed to reduce the variability of renewable energy by scheduling electric vehicles charging/discharging. We develop a price-based unit commitment model in support of the hourly operations of a personal transit system. A two-stage stochastic mixed integer programming model is formulated to optimize the coordinated operations of power generation and electric vehicles. 4 - Stochastic Optimization for Unit Commitment and Electricity Market Operation: A Review Zhi Zhou, Argonne National Laboratory, 9700 South Cass Ave. Bldg 221, Lemont, IL, 60437, United States of America, zzhou@anl.gov We present a comprehensive review of the application of stochastic programming to the UC problem and associated electricity market operations. The review discusses different characteristics of stochastic UC formulations. Moreover, we compare the performance of stochastic and deterministic UC models reported in the literature. Finally, the review summarizes the current status and prospects for industrial adaptation of stochastic methods in electricity market operations. Bi- and Multi-Level Optimization in Energy Systems Sponsor: ENRE – Energy II – Other (e.g., Policy, Natural Gas, Climate Change) Sponsored Session Chair: Qipeng Zheng, Assistant Professor, University of Central Florida, 12800 Pegasus Dr., P.O. Box 162993, Orlando, FL, 32817, United States of America, Qipeng.Zheng@ucf.edu 1 - Boundedly Rational User Equilibrium Models for Electricity Consumer Market Studies in Smart Grid Guanxiang Yun, PhD Student, University of Central Florida, 8112 Pamlico St, Orlando, Fl, 32817, United States of America, ygx8822@gmail.com, Qipeng Zheng We proposed a boundedly ration model for the user’s consumption of energy schedule with the smart grid. Under this principle, the total cost of the system can vary between a lower and upper bound. In order to decrease the upper bound we introduce perturbations for the unit price of the energy to control the user’s behavior. We use multiple methods to calculate. And it is interesting to found that the result of lagrangian method have strong duality even in the non-convex feasible region. 2 - Renewable-based Generation Expansion under A Green Certificate Market Green energy certificates represent a policy instrument to incentive renewable- based electricity generation. In this talk we present a family of generation expansion problems (GEP) to determine the optimal capacity of renewable generation including both an electricity and a certificate market. The GEP is first formulated as a complementarity problem assuming perfect competition. If producers compete a la Cournot, the GEP is reformulated as a mathematical problem with equilibrium constraints. 3 - An Integrated Economic Equilibrium Model for Electricity Markets Lihui Bai, University of Louisville, Speed School of Engineering, Louisville, 40292, United States of America, lihui.bai@louisville.edu, Swapna Sri Pothabathu, Qipeng Zheng, Andrew Liu We consider an integrated economic equilibrium model for an electricity market system consisting of electricity consumers, power generators, grid owners, coal producers, natural gas producers and pipeline owners. In this equilibrium model, each individual player optimizes its own subsystem while market-clearance conditions are satisfied wherever players interact with each other. This model can assist decision making and planning for energy policies. Numerical results will be reported. WE58 58-Room 110A, CC Salvador Pineda, Associate Professor, Department of Mathematical Sciences, University of Copenhagen, Universitetsparken 5, Copenhagen, 2100, Denmark, spinedamorente@gmail.com, Andreas Bock

4 - A Bi-level Decision Dependent Stochastic Programming Model for Facility Investment Planning Yiduo Zhan, PhD Student, University of Central Florida, 12800 Pegasus Drive, P.O. Box 162993, Orlando, FL, 32816, United States of America, yzhan@knights.ucf.edu, Qipeng Zheng A two-stage bilevel decision dependent stochastic model is proposed to tackle the facility investment planning problems. This model addresses both exogenous and endogenous uncertainties. The upper-level focuses on a long-term generation planning problem. The lower-level represents an electricity pricing problem that addresses the market clearing consideration with local transmission network.

WE59 59-Room 110B, CC Technology Management Contributed Session

Chair: Bruce Pollack-Johnson, Villanova University, 800 Lancaster Avenue, Villanova, PA, 19085, United States of America, bruce.pollack- johnson@villanova.edu 1 - Equilibrium Structure of Fixed-cost-reducing Alliances in New Technology Development

Hiroki Sano, Student, McCombs School of Business, The University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX, 78712-1277, United States of America, hiroki.sano@phd.mccombs.utexas.edu, Edward Anderson

Motivated by alliance formation between semiconductor manufacturers in new technology development, we study how competing firms’ cooperative decisions in a new market entry opportunity can be stabilized from a game-theoretic perspective. We discuss the equilibrium alliance structure when firms can be asymmetric in their individual cost efficiency and relative market power. We also address social efficiency of alliance formation assuming that an alliance incurs an additional cost of cooperation. 2 - Product Architecture and Trade-ins for Managing Sequential Innovation Houcai Shen, Nanjing University, No 22 Hankou Road, Nanjing, China, hcshen@nju.edu.cn, Zican Luo Science and technology advances drive firms to continually enhance their product’s performance and launch sequentially improving offerings. In this paper, we study the product design issue for the durable product when it is sequentially improved and the tradein policy is used, i.e. the integral architecture or the modular architecture? 3 - Putting the Genie to Work: Positioning Firms in the Value Chain to Profit from 3D Printing Anshuman Tripathy, Indian Institute of Management Bangalore, Bannerghatta Road, Bangalore, India, atripathy@iimb.ernet.in, Harsh Ketkar, Onkar Kulkarni We posit that 3D printing makes radical innovation at the product level more feasible. Additionally, it makes manufacturing more knowledge-intensive and customer-oriented. Firms can profit from this technology by deploying non- imitable complementary assets and developing unique capabilities. Through our detailed study of a 3D Printing firm, we provide definitive frameworks for analysing business models in 3D printing and finding a niche in which a firm may enter so as to profit from 3D printing. 4 - A Structural Equation Model of the Analytics Investment Decision

Bruce Pollack-Johnson, Villanova University, 800 Lancaster Avenue, Villanova, PA, 19085, United States of America, bruce.pollack-johnson@villanova.edu, Matthew Liberatore, Suzanne Clain

The purpose of this research is to model the relationships between the progression for the development of a firm’s analytics capabilities, firm size, organizational slack, and industry competitiveness as they affect the decision to invest in analytics. Structural equation modeling is used to investigate the relationships. This study draws on data obtained from firms that participated in a series of intensive workshops held by IBM.

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