Industrial Engineering and Management Systems

Korean Institute of Industrial Engineers (대한산업공학회)
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Optimal Electric Energy Subscription Policy for Multiple Plants with Uncertain Demand

  • Nilrangsee, Puvarin (School of Advanced Technology Asian Institute of Technology) ;
  • Bohez, Erik L.J. (School of Advanced Technology Asian Institute of Technology)
  • Published : 2007.12.31
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Abstract

This paper present a new optimization model to generate aggregate production planning by considering electric cost. The new Time Of Switching (TOS) electric type is introduced by switching over Time Of Day (TOD) and Time Of Use (TOU) electric types to minimize the electric cost. The fuzzy demand and Dynamic inventory tracking with multiple plant capacity are modeled to cover the uncertain demand of customer. The constraint for minimum hour limitation of plant running per one start up event is introduced to minimize plants idle time. Furthermore; the Optimal Weight Moving Average Factor for customer demand forecasting is introduced by monthly factors to reduce forecasting error. Application is illustrated for multiple cement mill plants. The mathematical model was formulated in spreadsheet format. Then the spreadsheet-solver technique was used as a tool to solve the model. A simulation running on part of the system in a test for six months shows the optimal solution could save 60% of the actual cost.

Keywords

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