171. A Co-Location and Allocation Model for Supply Chain Facility and Microgrid with Net-Zero Operations
Invited abstract in session TD-42: Sustainable supply chain design, stream Circular & Sustainable Supply Chains.
Tuesday, 14:30-16:00Room: Newlyn GR.02
Authors (first author is the speaker)
| 1. | Tongdan Jin
|
| Ingram School of Engineering, Texas State University |
Abstract
Manufacturing supply chain design usually focuses on the uncertainties in materials, capacity, yield, and demand, while energy variability is inadequately investigated. We propose a location-allocation model for siting and sizing plants, distribution centers and renewable microgrids to achieve net-zero carbon operations under power demand and supply uncertainty. The model further schedules production, inventory, transportation, energy storage, and demand response to lower the operational cost. The study represents a first-of-its-kind in jointly sitting and sizing industrial facilities and distributed energy resources to attain the net-zero goal in a multi-layer supply chain infrastructure. Numerical experiments show that transactive energy, time-of-use rate, and weather conditions play a critical role in locating and allocating plants, warehouses, wind turbines, solar panels, and energy storage. Contrary to intuition, energy storage, which balances the intermittent power and uncertain load, has limited benefit to the cost saving. It is concluded that the transactive energy market adds new value to the manufacturing supply chain by generating new revenue streams, in addition to increasing energy resilience and mitigating climate change.
Keywords
- Supply Chain Management
- Location
- Production and Inventory Systems
Status: accepted
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