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An extension of the general lot-sizing and scheduling problem (GLSP) with time-dependent energy prices

Author

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  • Matthias Gerhard Wichmann

    (Technische Universität Braunschweig, Institute of Automotive Management and Industrial Production, Chair of Production and Logistics)

  • Christoph Johannes

    (Technische Universität Braunschweig, Institute of Automotive Management and Industrial Production, Chair of Production and Logistics)

  • Thomas Stefan Spengler

    (Technische Universität Braunschweig, Institute of Automotive Management and Industrial Production, Chair of Production and Logistics)

Abstract

The demand for electrical power in industrial production processes often leads to increasing energy costs for companies. In the course of a more sustainable power generation in the future, companies are faced with time-dependent energy prices, which have the potential to influence energy costs significantly. In order to manufacture the products at minimal decision-relevant total costs, planning approaches for production scheduling have to consider energy costs. To date, time-dependent energy prices are only considered in few production planning approaches in the field of job-shop scheduling and in some individual planning approaches in the field of simultaneous lot-sizing and scheduling. Up to now, a general model formulation for the consideration of time-dependent energy prices in lot-sizing and scheduling and an investigation of appropriate conditions for an energy-oriented production planning is missing. In this contribution, the energy-oriented general lot-sizing and scheduling problem is introduced as an extension of the respected general lot-sizing and scheduling problem. The cost saving potential is analyzed by considering energy in the lot-sizing and scheduling problem compared to classical planning approaches and appropriate frame conditions are investigated within a structured parameter analysis. In the numerical study, this leads to a total cost saving potential about 1.04% and an energy cost saving potential about 9.69%. In particular, a high volatility of the energy prices and a direct transfer of this volatility in form of short periods of constant energy prices increase this cost saving potential.

Suggested Citation

  • Matthias Gerhard Wichmann & Christoph Johannes & Thomas Stefan Spengler, 2019. "An extension of the general lot-sizing and scheduling problem (GLSP) with time-dependent energy prices," Journal of Business Economics, Springer, vol. 89(5), pages 481-514, July.
  • Handle: RePEc:spr:jbecon:v:89:y:2019:i:5:d:10.1007_s11573-018-0921-9
    DOI: 10.1007/s11573-018-0921-9
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    More about this item

    Keywords

    Energy-oriented production planning; Lot-sizing and scheduling; Time-dependent energy prices; MIP;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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