Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

WC48

2 - Designing Hydro Supply Chains for Energy, Food, and Flood Kwon Gi Mun, Ph.D, Fairleigh Dickinson University, Teaneck, NJ, United States, Yao Zhao, Raza Ali Rafique The interconnected issues such as Water, Food, Energy and Flood are among the most formidable challenges faced by developing countries. In this paper, we apply SCM concepts to water resource development and provide the end-to-end and dynamic perspectives. We found that the development of hydropower has the potential to address all these issues simultaneously. Our results demonstrate the value of the SCM perspective on hydro network expansion, and provide insights on the optimal development strategies regarding location, sequence and mix of hydro projects. 3 - Fiscal Policy in the Natural Gas Sector: An Optimization Approach Ekaterina Dukhanina, MINES ParisTech, 60 Boulevard Saint Michel, Paris, 75006, France, Olivier MASSOL, Daria Kirova In this paper we analyze the results of introduction of a new formula for mineral resource extraction tax in the biggest and the most complex domestic natural gas market. We build an economic equilibrium model involving strategic interaction between major natural gas producers and government subject to operational, political and market constraints, specific for the Russian gas industry. We show that the new tax is neither an optimal policy for the tax revenue maximization nor a socially optimal solution, as the possibility of sequential optimization distorted initial results of the tax reform. Chair: Qiangfei Chai, Xi’an Jiaotong University, Xi’an, 2, China 1 - A Performance Measurement System for Green Supply Chain Performance Evaluation Nima Kazemi, Massachusetts Institute of Technology, Cambridge, MA, 02140, United States, S. Maryam Masoumik In this paper, a fuzzy-rule based performance measurement system is developed to evaluate the performance measures for both Green supply chain management practices implementation and performance outcomes. To construct the performance measurement system, a comprehensive literature review was conducted to investigate various green supply chain initiatives. Structural equation modeling is used to categorize measures and then a fuzzy membership function is designed for evaluation purpose. The applicability of the developed performance measurement system is evaluated by using a real case study in Malaysian manufacturing industry. 2 - An Analysis of Sustainability in Small Businesses in New York Small and Medium-sized Enterprises (SMEs) are responsible for most of the pollution generated by businesses on earth; they are collectively generate approximately 60% of total carbon dioxide emissions and an alarming 70% of total pollution. Regulations, social and competitor trends, education and businesses’ self-motivation are among the major factors behind the small businesses’ decision on implementing sustainability in their operations. We examine the data collected from hundreds of SMEs in NY State to identify the motivators and obstacles to the adoption of sustainable solutions by SMEs in NYState. 3 - Optimal Carbon Abatement Strategy Under Cap-and-trade Qiangfei Chai, Xi’an Jiaotong University, Xi’an, China, Zhongdong Xiao The importance of carbon abatement has been frequently emphasized around the world. This paper attempts to explore the appropriate carbon abatement strategy for firms who are regulated by cap-and-trade by taking into account the unique advantages of remanufacturing for both the monopolistic environment and the competitive environment. Our results indicate that involving in investment and remanufacturing collectively strategy is the optimal strategy in the monopolistic environment. However, this strategy is no longer optimal for the manufacturer in the competitive environment. We provide some decision guidance for the firms in the competitive environment. John Vongas, Ithaca College, Ithaca, NY, United States, Narges Kasiri, Hormoz Movassaghi, Daniel Ruthman n WC47 North Bldg 229A Practice- Sustainable Operations Contributed Session

n WC48 North Bldg 229B Enviroment, Energy, and Natural Resources Contributed Session Chair: Kenneth Bruninx, KU Leuven, Celestijnenlaan 300, Leuven, B3001, Belgium 1 - On the Interaction between Aggregators, Electricity Markets and Residential Demand Response Providers Kenneth Bruninx, Postdoctoral Researcher, KU Leuven, Celestijnenlaan 300, P.O. Box 2421, Leuven, B3001, Belgium, Hrvoje Pandzic, Helene Le Cadre, Erik Delarue The flexibility of thermostatically controlled loads may be monetized by aggregators, acting as mediators between consumers and the electricity market. We study the strategic interactions between an aggregator, its consumers and the wholesale market using a bilevel optimization model. The aggregator-consumer interaction is captured as a Stackelberg or a Nash Bargaining Game. The aggregator takes strategic positions in the day-ahead electricity market, represented as a stochastic Stackelberg Game. The presented methodology may be used to assess the value of DR in a deregulated power system. 2 - Failure of Green Technology Adoption and the Decision to Offshore Production Wenqing Zhang, University of Minnesota Duluth, 1318 Kirby Drive, Labovitz School of Business and Economics, Duluth, MN, 55812, United States, Prasad Padmanabhan, Chia-Hsing Huang Strong environmental pollution regulations in host countries (for example, through carbon taxes, focus on the triple bottom line, incentives to select green technology investment options) have forced multinational corporations (MNCs) to change their operations practices. In this study, an optimization model is presented where a domestic firms’ propensity to offshore is shown to be function of the failure of green technology adoption. The findings suggest that a domestic firms’ propensity to offshore pollution via production in pollution friendly host countries is directly related to the possibility of failure of the adopted green technology. 3 - Scenario Selection and Weighting Algorithm for Large Scale Stochastic Mixed-integer Programs and Application to Stochastic Transmission Planning Jesse Bukenberger, Pennsylvania State University, 310 Leonhard Building, University Park, PA, 16802, United States, Mort David Webster, Uday Shanbhag Stochastic programs with many scenarios and complex recourse decisions can exceed computational memory and time resources. Often, the recourse costs of state-action pairs are not completely independent and exhibit a relationship that can be exploited with data compression techniques. We present an algorithm to select and weight a small subset of the original scenario space and feasible solution space to provide an efficient approximation of the costs of other state- action pairs. We demonstrate substantial computational savings in the context of stochastic transmission expansion planning. 4 - Emission Reduction at Ports by Integrating Tax and Incentive Policies and Green Infrastructure Development Air pollution due to port activities and development has a high impact on climate change and human health. However, ports are reluctant to implement emission abatement solutions due to associated barriers and costs. We analyze the process in which government defines incentive and tax policies and motivates ports to initiate green efforts. We develop a multi-objective bi-level programming model to find the optimal incentive and tax policies for the government in the upper level, and the optimal choice of green technologies for the multiple ports in the lower level. 5 - A Bilevel Optimization Approach to Co-operative Dispatch of Transmission-level Renewables with Microgrids Jialin Liu, 325 Riley Robb Hall, Ithaca, United States, Lindsay Anderson As energy systems evolve to a sustainable and decentralized structure with a high penetration of renewable energy and distributed generation, microgrids (MG) will play a critical role, featuring distributed local generation, energy storage, and demand response. With the possibility of numerous MGs connected to and exchanging power with the transmission system (TS), new operational paradigms are required. Co-optimization of these systems will provide maximal benefits to the complete system. In this work, a bi-level optimization framework is used to model co-operative dispatch of TS and MG, and analyze the impacts on renewable penetration level, and the operation cost of both systems. Anahita Molavi, University of Houston, 4722 Calhoun Rd, Houston, TX, 77204-4007, United States, Gino J. Lim

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