2015 Informs Annual Meeting

MA56

INFORMS Philadelphia – 2015

MA57 57-Room 109B, CC Optimization for Wind Energy Sponsor: ENRE – Energy II – Other (e.g., Policy, Natural Gas, Climate Change) Sponsored Session Chair: Zana Cranmer, University of Massachusetts, Amherst, MA, acranmer@umass.edu 1 - Lagged Processes and Nested Decisions: Modeling for Renewables The proper modeling of wind integration in an energy system requires modeling the lags between when decisions are made and when they are implemented, the evolution of forecasts (and forecast accuracy), as well as the nesting of decisions. We describe how to correctly model these problems, and contrast our approach with popular modeling and algorithmic strategies currently used in the study of wind integration. We describe how modeling inaccuracies can lead to errors in policy conclusions. 2 - Modeling Economic and Environmental Tradeoffs in Offshore Wind Development Zana Cranmer, University of Massachusetts, Amherst, MA, acranmer@umass.edu, Erin Baker Using a portfolio model to capture interactions between siting choices, we can estimate the impact of different environmental policies on the economic value of the wind resources in an area. Policies include site restrictions, maximizing continuous space for ecosystems, and establishing set backs from hot spots. 3 - Optimizing Storage Technologies to Add Value to Wind Energy Jessika Trancik, Massachusetts Institute of Technology, Cambridge, MA, United Statesof America, trancik@mit.edu Energy storage can increase the value of wind energy if costs are sufficiently low. Evaluating diverse storage technologies on a common scale has proven a chal- lenge, however, due to their differing cost structures. Here we present a new conceptual and quantitative model for comparing storage technologies. Some storage technologies today are found to add value to wind energy in some loca- tions, but cost reduction is needed to reach widespread profitability. 4 - Understanding How Generation Flexibility and Renewable Energy Affect Power Market Competition Owen Wu, Indiana University, 1309 E. 10th Street, Bloomington, IN, 47405, United States of America, owenwu@indiana.edu, Xiuli Chao, Majid Algwaiz We study supply function competition among power generators with different levels of flexibility. We analyze how generators’ (in)flexibility affects the equilibrium behavior and market price. We also investigate the impact of intermittent renewable energy on the equilibrium, focusing on the effects of renewable energy penetration level, dispatch priority, and the production-based subsidies. We find that the economic curtailment policy increases market competition and reduces price volatility. MA58 58-Room 110A, CC Analytics in the Petrochemical and Petroleum Industries I Sponsor: ENRE – Natural Resources II – Petrochemicals and Petroleum Sponsored Session Chair: Margery Connor, Chevron, 6001 Bollinger Canyon, F-2080, San Ramon, CA, 94583, MHCO@chevron.com 1 - Hydrocarbon Procurement with Take-or-Pay Contracts Metin Cakanyildirim, Professor, University of Texas at Dallas, 800 W. Campbell Road SM30, Richardson, TX, United States of America, metin@utdallas.edu, Koray Simsek, Cagri Haksoz This paper studies a take-or-pay procurement contract for petrochemicals in the presence of spot market trading and storage capability in a dynamic setting. Main decisions are purchase and storage quantities and their relation with the take-or- pay penalty and net convenience yield. A computationally efficient formulation is sought and analyzed. Warren Powell, Faculty (Advisor), Princeton University, Sherrerd Hall, Charlton Street, Princeton, NJ, 08540, United States of America, powell@princeton.edu, Weidong Han, Genna Gliner, Hugo Simao

3 - Efficiency Analysis of Internal Combustion Engines: Naturally Aspirated vs Turbo/super-charged

Dong-Joon Lim, Portland State University, 1900 SW 4th Ave, Suite LL-50-02, Portland, OR, United States of America, dongjoon@pdx.edu, Tim Anderson This study investigates the technical efficiency of NA and T/SC engines to identify varying technology adoption patterns as well as breakthrough engines over the past 10 years. The results indicate that T/SC engines are enlarging their dominance on the technology frontier and if current environmental and fuel economy regulations continue to be stiffer, a return to high displacement unblown engines is unlikely to happen without a major breakthrough in the NA technologies. MA56 56-Room 109A, CC Facility Location and Supply Chain Network Design Sponsor: Location Analysis Sponsored Session Chair: Kayse Lee Maass, Ph.D. Candidate, University of Michigan, 1205 Beal Ave., Ann Arbor, MI, 48109, United States of America, leekayse@umich.edu 1 - Selective Newsvendor Problem with Quantity-dependent Leadtime and Marketing Decisions Jianing Zhi, The University of Alabama, 300 Alston Hall, 361 Stadium Drive, Tuscaloosa, AL, 35487, United States of America, jzhi@crimson.ua.edu, Burcu Keskin We consider a selective newsvendor problem with limited sales force and quantity-dependent leadtime to maximize the expected profit for a company. We evaluate our models with demands, capabilities of agents, leadtime, and waiting time tolerance of customers to estimate their impacts on the profit, ordering policies, and marketing decisions. 2 - Constrained Connected Facility Location Problems Maria Gisela Bardossy, Assistant Professor, University of Baltimore, 1420 N. Charles Street, Merrick School of Business, Baltimore, MD, 21201, United States of America, mbardossy@ubalt.edu We investigate and propose heuristics for two variants of the Connected Facility Location (ConFL) problem: degree constrained and hop constrained. The ConFL problem combines features of the uncapacitated facility location problem with the Steiner tree problem and is known to be NP-complete. However, in certain practical applications, the number of connections at the facility nodes and/or the connections between open facilities is limited, which we address in this presentation. 3 - A Supply Chain Network Design Problem Considering Market Cannibalization Yanzi Zhang, Tsinghua University, Beijing, China, zhzhang@mail.tsinghua.edu.cn The paper studies a supply chain network design problem with cannibalization of new products sales by remanufactured products. Location, inventory, and pricing decisions are considered in a two-tier supply chain network. New and remanufactured products are supplied together with price-dependent demands. The cannibalization effect of them is considered. The problem is formulated as a nonlinear program. Managerial insights are explored by numerical experiments. 4 - Stochastic Inventory Modulated Capacitated Facility Location Models Kayse Lee Maass, Ph.D. Candidate, University of Michigan, 1205 Beal Ave., Ann Arbor, MI, 48109, United States of America, leekayse@umich.edu, Mark Daskin, Siqian Shen We compare various approaches to modeling a stochastic capacitated facility location problem in which processing facilities are able to accept demands in excess of the capacity constraint for short periods of time. We show that the location and allocation decisions obtained from our models can result in significantly reduced costs when compared to models that do not account for the likelihood that demands may exceed capacity on some days.

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