References (39)



Models for Production Planning under Power Interruptions

Cagri Latifoglu

Lehigh University

Lawrence V. Snyder

Lehigh University - Department of Industrial and Systems Engineering

Pietro Belotti

Clemson University

June 27, 2011

We present a robust optimization model for production planning under electricity supply that is subject to uncertain interruptions caused by participation in interruptible load contracts (ILCs). The objective is to minimize the cost of electricity used for production while providing a robust production plan which ensures demand satisfaction under all possible interruption scenarios. Due to the combinatorial size of the interruption scenario set, this is a challenging problem. Furthermore, we assume that no probabilistic information is known about the supply uncertainty and we only use the information given in the ILC to structure an uncertainty set that captures the possible scenarios. We first construct a general robust framework to handle this uncertainty and provide a heuristic algorithm which approximates the optimal solution of the robust model. Computational experiments are also conducted to compare the performance of the robust model and the heuristic algorithm. Next we show how to include operational impacts of interruptions such as “recovery modes” in the definition of the uncertainty set.

Number of Pages in PDF File: 35

Keywords: production planning, robust optimization, interruptible load contract

JEL Classification: C44, C61

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Date posted: June 29, 2011  

Suggested Citation

Latifoglu, Cagri and Snyder, Lawrence V. and Belotti, Pietro, Models for Production Planning under Power Interruptions (June 27, 2011). Available at SSRN: https://ssrn.com/abstract=1873728 or http://dx.doi.org/10.2139/ssrn.1873728

Contact Information

Cagri Latifoglu (Contact Author)
Lehigh University ( email )
621 Taylor Street
Bethlehem, PA 18015
United States
Lawrence V. Snyder
Lehigh University - Department of Industrial and Systems Engineering ( email )
Harold S. Mohler Laboratory
200 West Packer Avenue
Bethlehem, PA 18015-1582
United States
Pietro Belotti
Clemson University ( email )
101 Sikes Ave
Clemson, SC 29634
United States
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