Effects of carbon-emission and setup cost reduction in a sustainable electrical energy supply chain inventory system

College

Gokongwei College of Engineering

Department/Unit

Industrial Engineering

Document Type

Article

Source Title

Energies

Volume

12

Issue

7

Publication Date

3-29-2019

Abstract

This article develops a sustainable electricity supply chain mathematical model that assumes linear price-dependent customer demands where the price is a decision variable under setup cost and carbon emission. The sustainable electrical supply chain system contained: (a) power generation; (b) transmission substations; (c) distribution substations; and (d) customer. The production rates depend on the demand rate, and demand for electricity by the customers is dependent on the price of electricity where the electrical energy was generated and transmitted through multiple substations to customers. Moreover, we considered that the capacities of transmission rates, power generation, and distances in between two stations are associated with the distribution costs and transmission cost. Here, we used the theory of inventory to develop a new model and suggested a procedure to deduce an optimal solution for this model. Finally, a numerical example and sensitivity analysis are employed to illustrate the present study and with managerial insights. © 2019 by the authors

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Digitial Object Identifier (DOI)

10.3390/en12071226

Disciplines

Industrial Engineering | Operations Research, Systems Engineering and Industrial Engineering

Keywords

Carbon dioxide mitigation; Renewable energy sources; Electric utilities—Costs; Electric power production

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