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Energy costs vs. carbon dioxide emissions in short-term production planning

Author

Listed:
  • Andreas Dellnitz

    (FernUniversität in Hagen, Chair of Operations Research)

  • Damian Braschczok

    (FernUniversität in Hagen, Chair of Operations Research)

  • Jonas Ostmeyer

    (FernUniversität in Hagen, Chair of Operations Research)

  • Markus Hilbert

    (FernUniversität in Hagen, Chair of Operations Research)

  • Andreas Kleine

    (FernUniversität in Hagen, Chair of Operations Research)

Abstract

In energy-oriented lot-sizing and scheduling research, it is often assumed that minimizing energy costs automatically leads to an improvement of the ecological footprint of a company, i.e., lower carbon dioxide emissions. More precisely, a close to one (positive) correlation between energy costs and carbon dioxide emissions is often supposed. In this contribution, we show that this conjecture does not always hold true due to fluctuating carbon dioxide emissions over the whole day. Therefore, we present a real-world business case study, combining lot-sizing and machine scheduling under time-varying electric energy costs and carbon dioxide emissions in a mixed integer optimization model; in this context, we also consider on-site power generation. The interplay between all these aspects is demonstrated via a numerical analysis.

Suggested Citation

  • Andreas Dellnitz & Damian Braschczok & Jonas Ostmeyer & Markus Hilbert & Andreas Kleine, 2020. "Energy costs vs. carbon dioxide emissions in short-term production planning," Journal of Business Economics, Springer, vol. 90(9), pages 1383-1407, November.
    • Handle: RePEc:spr:jbecon:v:90:y:2020:i:9:d:10.1007_s11573-020-01000-1
    DOI: 10.1007/s11573-020-01000-1
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    References listed on IDEAS

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    1. Matthias Gerhard Wichmann & Christoph Johannes & Thomas Stefan Spengler, 2019. "Correction to: An extension of the general lot-sizing and scheduling problem (GLSP) with time-dependent energy prices," Journal of Business Economics, Springer, vol. 89(6), pages 739-742, August.
    2. Mansouri, S. Afshin & Aktas, Emel & Besikci, Umut, 2016. "Green scheduling of a two-machine flowshop: Trade-off between makespan and energy consumption," European Journal of Operational Research, Elsevier, vol. 248(3), pages 772-788.
    3. Biel, K. & Glock, C. H., 2016. "Systematic literature review of decision support models for energy-efficient production planning," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 83071, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Munda, G. & Nijkamp, P. & Rietveld, P., 1994. "Qualitative multicriteria evaluation for environmental management," Ecological Economics, Elsevier, vol. 10(2), pages 97-112, July.
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    6. 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.
    7. Christoph Johannes & Matthias G. Wichmann & Thomas S. Spengler, 2018. "Flexible Production Scheduling with Volatile Energy Rates," Operations Research Proceedings, in: Andreas Fink & Armin Fügenschuh & Martin Josef Geiger (ed.), Operations Research Proceedings 2016, pages 489-495, Springer.
    8. David Wozabal & Christoph Graf & David Hirschmann, 2016. "The effect of intermittent renewables on the electricity price variance," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(3), pages 687-709, July.
    9. Jaehn, Florian, 2016. "Sustainable Operations," European Journal of Operational Research, Elsevier, vol. 253(2), pages 243-264.
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    Cited by:

    1. Markus Hilbert & Andreas Dellnitz & Andreas Kleine, 2023. "Production planning under RTP, TOU and PPA considering a redox flow battery storage system," Annals of Operations Research, Springer, vol. 328(2), pages 1409-1436, September.
    2. Rainer Baule & Michael Naumann, 2022. "Flexible Short-Term Electricity Certificates—An Analysis of Trading Strategies on the Continuous Intraday Market," Energies, MDPI, vol. 15(17), pages 1-28, August.

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    More about this item

    Keywords

    Energy costs; Carbon dioxide emissions; Multi-objective production planning; Sustainable manufacturing;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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