Tradable permit schemes for congestible facilities with uncertain supply and demand

We consider a retailer, facing uncertain supply and price-sensitive stochastic demand, who has to make stocking and pricing decisions for a given selling period. We also consider the case when the demand is price-sensitive deterministic and provide a unified framework for the model with additive errors. For both scenarios, we look at the case when the price is set before receiving the supply, called simultaneous pricing and the case when the price is set after receiving it, which is called postponed pricing. We develop a procedure for finding the optimal policy for the retailer with general distributions for the supply and the demand. To study the effect of supply uncertainty on expected profit, we conduct sensitivity analysis and develop results for both pricing scenarios and give insights. The results have important implications for a retailer in the supply chain, where a portion of the inventory may be lost due to variety of factors including mishandling and failure to meet quality standards. The findings shed light on the nature and role of prices and their relationship to supply and demand.

Download Full-text

Hedging against uncertain supply and demand using options in a single period framework

2015 International Conference on Industrial Engineering and Operations Management (IEOM) ◽

10.1109/ieom.2015.7093909 ◽

2015 ◽

Author(s):

F. J. Arcelus ◽

Ravi Gor ◽

G. Srinivasan

Keyword(s):

Supply And Demand ◽

Single Period ◽

Uncertain Supply

Download Full-text

A Responsive Pricing Grid Operator Sourcing from Competing Generators under Uncertain Supply and Demand

Sustainability ◽

10.3390/su11154061 ◽

2019 ◽

Vol 11 (15) ◽

pp. 4061 ◽

Cited By ~ 1

Author(s):

Jiaping Xie ◽

Lihong Wei ◽

Weisi Zhang ◽

Yu Xia ◽

Jing Li

Keyword(s):

Supply Chains ◽

Stackelberg Game ◽

Supply And Demand ◽

Electricity Supply ◽

Sourcing Strategy ◽

Uncertain Supply ◽

Renewable Energy Generation ◽

Disruption Risks ◽

Numerical Case Study

Electricity supply chains involve more sources of uncertainty than typical production and manufacturing supply chains, owing to the intermittent nature of renewable energy generation. Therefore, it is critical but challenging to mitigate supply disruption risks by improving management methods. The extant literature has mainly investigated the sourcing strategies of manufacturers with price-taking suppliers. Where there is an option to source from multiple generators, including regular but unreliable generators and reliable backup generators, a flexible sourcing strategy is usually regarded as the best tactic for the grid operator. Our objective is to evaluate the costs and benefits of flexible sourcing and sole sourcing when generators are strategic price-setters. In this paper, we develop a Stackelberg game with wholesale prices contingent on the dominant grid operator’s sourcing strategy. We describe and analyze the resulting equilibriums under different scenarios. The results show that the grid operator does not necessarily benefit from a backup generator and that the flexible sourcing mode is not in fact optimal, except when the disruption ratio of the unreliable generator is medium and the penalty-sharing ratio of the unreliable generator is low. The model is applied to a numerical case study of a real-word electricity supply chain to illustrate the validity and effectiveness of the proposed conclusions.

Download Full-text

Study on the Algorithm of Electricity Coal Inventory Based on the Balance of Power Supply and Demand

Applied Mechanics and Materials ◽

10.4028/www.scientific.net/amm.740.989 ◽

2015 ◽

Vol 740 ◽

pp. 989-993 ◽

Cited By ~ 1

Author(s):

Jing Ya Yao ◽

Le Zheng ◽

Jia Chen Zhou ◽

Jing Zhong Wang ◽

Wei Min Hu ◽

...

Keyword(s):

Power Plant ◽

Inventory Management ◽

Thermal Power Plant ◽

Power Plants ◽

Supply And Demand ◽

Thermal Power ◽

Hunan Province ◽

Safety Stock ◽

Safety Stocks ◽

Uncertain Supply

Since the trend of electricity power industry reformation is to separate power plants from grid, it’s difficult for power Grid Company to interference the operation of plants. But as a manager of grid, it’s necessary for Grid Company to build a calculation formula of monthly standard electricity coal inventory to estimate the security of thermal power plant operation. y analyzing the special features of coal inventory management of thermal power plants. Taking into consideration of the changing demand of electricity and the uncertain supply of coal during a month, a practical inventory model with the target of maximizing the safety of generating electricity was built based on the modified classic safety stock formula to determine the optimal standard safety stocks. It’s depends on history data. Finally, On the basis of the solving results of power plants in Hunan province, the optimal safety stock was found, and the quantity of coal to purchase during a month were also suggested. The results provide a good reference for guiding the purchase and storage strategy of thermal power plant.

Download Full-text