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Integrated production and renewable energy generation in the presence of hydrogen energy storage

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  • Youyi Feng
  • Mozart B.C. Menezes

Abstract

In this paper, we propose an inventory model that considers dual sources with energy storage to address the energy efficiency of an effective make‐to‐stock production facility that has access to grid electricity and a source of renewable energy, along with energy‐storage capabilities. Such systems are being implemented in practice; however, the literature on inventory models does not offer solutions for extracting value from the management of such a complex energy mix coupled to energy‐storage technologies. We explore a periodic review production/inventory model in which hydrogen functions as an energy‐storage mechanism. We identify the structural properties of the objective function and obtain managerial insights through a complementarity analysis that is aimed at characterizing optimal energy‐efficiency policies.

Suggested Citation

  • Youyi Feng & Mozart B.C. Menezes, 2022. "Integrated production and renewable energy generation in the presence of hydrogen energy storage," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2222-2236, May.
    • Handle: RePEc:bla:popmgt:v:31:y:2022:i:5:p:2222-2236
    DOI: 10.1111/poms.13674
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    References listed on IDEAS

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    1. Q. Feng & G. Gallego & S. P. Sethi & H. Yan & H. Zhang, 2005. "Periodic-Review Inventory Model with Three Consecutive Delivery Modes and Forecast Updates," Journal of Optimization Theory and Applications, Springer, vol. 124(1), pages 137-155, January.
    2. Zhongsheng Hua & Yimin Yu & Wei Zhang & Xiaoyan Xu, 2015. "Structural properties of the optimal policy for dual-sourcing systems with general lead times," IISE Transactions, Taylor & Francis Journals, vol. 47(8), pages 841-850, August.
    3. Mehdi Golari & Neng Fan & Tongdan Jin, 2017. "Multistage Stochastic Optimization for Production-Inventory Planning with Intermittent Renewable Energy," Production and Operations Management, Production and Operations Management Society, vol. 26(3), pages 409-425, March.
    4. S. P. Sethi & H. Yan & H. Zhang, 2001. "Peeling Layers of an Onion: Inventory Model with Multiple Delivery Modes and Forecast Updates," Journal of Optimization Theory and Applications, Springer, vol. 108(2), pages 253-281, February.
    5. Suresh P. Sethi & Houmin Yan & Hanqin Zhang, 2003. "Inventory Models with Fixed Costs, Forecast Updates, and Two Delivery Modes," Operations Research, INFORMS, vol. 51(2), pages 321-328, April.
    6. Jae Ho Kim & Warren B. Powell, 2011. "Optimal Energy Commitments with Storage and Intermittent Supply," Operations Research, INFORMS, vol. 59(6), pages 1347-1360, December.
    7. Felix Papier, 2016. "Managing Electricity Peak Loads in Make-To-Stock Manufacturing Lines," Production and Operations Management, Production and Operations Management Society, vol. 25(10), pages 1709-1726, October.
    8. Jian Yang, 2004. "Production Control in the Face of Storable Raw Material, Random Supply, and an Outside Market," Operations Research, INFORMS, vol. 52(2), pages 293-311, April.
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    Cited by:

    1. Oliveira, Fernando S. & Ruiz Mora, Carlos, 2023. "Risk management in solar-based power plants with storage: a comparative study," DES - Working Papers. Statistics and Econometrics. WS 38369, Universidad Carlos III de Madrid. Departamento de Estadística.

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