Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

WD46

5 - Modeling Demand-side Flexibility in Electricity Markets G ray Kara, PhD Candidate, Norwegian University of Science and Technology, Trondheim, Norway, Asgeir Tomasgard, Hossein Farahmand Increase in variable renewable energy sources, electrical vehicles, batteries etc. shaped load profiles and generation plans. The term flexibility is not new in supply-side power markets studies. However, the flexibility in demand-side gathered attraction in recent times by the support of developing technologies. In this study, our aim is the characterization of flexibility resources in energy markets along three classes: Time, spatial, and provision. We examine demand- side flexibility in stochastic optimization models by considering availability and geographical relevance from different flexibility providers. n WD46 North Bldg 228B Sustainable Electricity Systems Sponsored: Energy, Natural Res & the Environment/Energy Sponsored Session Chair: Destenie Supreece Nock, Univ. of Mass-Amherst, Hadley, MA, 01035, United States 1 - Scenario Grouping for Stochastic Unit Commitment Amelia Musselman, Postdoctoral Researcher, Lawrence Livermore National Laboratory, Livermore, CA, 94551, United States, Kevin C. Ryan, Deepak Rajan, Jean-Paul Watson In this research, we introduce an algorithm to intelligently group scenarios within a scenario decomposition algorithmic framework for solving stochastic programs. Two variations of the algorithm are implemented as fully general extensions to PySP’s (Pyomo’s stochastic programming library) implementation of the iterative progressive hedging algorithm for solving stochastic programs. In the first, scenario grouping is used as a pre-processing step to progressive hedging. In the second, scenarios are grouped in each iteration until the bounds given by grouping converge. The two algorithms are applied to solve increasingly difficult instances of stochastic unit commitment. 2 - The Midcontinent Independent System Operator Renewable This presentation will show an overview of the Renewable Integration Impact Assessment study conducted at the Mid-Continent Independent System Operator. The study framework will be highlighted, including preliminary results related to the resource adequacy, energy adequacy, and operating reliability modules. 3 - Sustainable Electric Generation Portfolios: A Multi-criteria Decision Analysis Framework Applied to the New England Power System Destenie Supreece Nock, Univ. of Mass-Amherst, Hadley, MA, 01035, United States, Erin Baker We evaluate the sustainability of electric generation portfolios, using a multi- criteria decision analysis approach applied to the New England power system. We evaluate sustainability of generation portfolios using a set of seven sustainability criteria. Here generation portfolios with varying levels of offshore wind, natural gas, hydro, and nuclear, are considered under various preference scenarios. We find that when the most weight on air pollution and climate change, adding nuclear capacity is a dominant choice. If avoiding nuclear and conserving water is most important, then retiring oil and nuclear while adding high levels of offshore wind rises to the top. n WD47 North Bldg 229A Practice- Sustainable Operations & Development Contributed Session Chair: Anita Lee-Post, University of Kentucky, Department of Marketing and Supply Chain, 455f Business & Economics Bldg, Lexington, KY, 40506, United States 1 - The Value of Quality Grading in Remanufacturing under Quality Level Uncertainty Meltem Denizel, Iowa State University, 2340 Gerdin Business Building, 2167 Union Dr., Ames, IA, 50011-2027, United States, Ihsan Yanikoglu In remanufacturing, variability in quality levels of cores has an impact on both the process cost and time. While previous research suggest that quality grading adds value, there are also concerns about how reliably the grades can be identified. We develop a robust optimization model for remanufacturing planning. Both the unit cost and time of remanufacturing are uncertain parameters that are assumed to reside in two uncertainty sets; box or ellipsoidal. We analyze Integration Impact Assessment Armando Figueroa, PhD, MISO

uncapacitated and capacitated cases and based on extensive numerical analysis, conclude that while there is still value in grading on average, it becomes significantly smaller than the case when uncertainty is not accounted for. 2 - Firm Performance through Corporate Social Responsibility Leveraging the Supply Chain Feng Cheng, PhD Candidate, Arizona State University, Tempe, AZ, United States This study examines the effect of supply-chain CSR adoption - i.e. adoption of Corporate Social Responsibility in the value chain (from supply base to customer base) - on the focal firm’s financial performance. Our results show that supply- chain CSR does not necessarily lead to superior firm performance. We uncover pathways that can benefit a firm from the adoption of supply-chain CSR; namely, (1) innovation driven from both focal firm CSR and supply-chain CSR and (2) employee performance. The results suggest that a firm benefits from supply-chain CSR only if the adoption inspires innovation and high employee productivity. Such positive effect becomes larger in less eco-friendly industries. 3 - Optimal Fleet Size and the Efficiency-effectiveness-equity Trade-offs in Humanitarian Procurement Policies Laura Turrini, European Business School, Oestrich Winkel, Germany We focus on fleet management and empirically estimate the real needs of a decentralized humanitarian organization that operates both relief and development operations. We study the optimal allocation of vehicle procurement, based on a set of constraints, in order to satisfy organizational needs as efficiently, effectively and equitably as possible. 4 - Sustainable Consumption Behavior Anita Lee-Post, University of Kentucky, Department of Marketing and Supply Chain, 435Q Business & Economics Bldg, Lexington, KY, 40506, United States, Chon-Huat Goh The purpose of this research is to further our understanding on sustainable consumption behavior. An empirical study is sought to investigate the pathway linking attitude, social influence, and sustainable consumption behavior using a survey methodology. Operational and marketing implications of findings from this study will be presented. n WD48 North Bldg 229B Uncertainty-Driven Power Systems Planning and Operation Supporting Resilience Sponsored: Energy, Natural Res & the Environment/Energy Sponsored Session Chair: Dehghanian Payman, George Washington University, 800 22nd St. NW, Science and Engineering Hall (SEH) 6630, Washington, DC, 20052, United States 1 - Big Data Analytics in Large Scale Power Grid Economic Planning Yingzhong Gu, PhD, GE Energy Consulting, Schenectady, NY, 12345, United States Power system economic planning is a core part of a comprehensive power system planning process, which not only considers the needs for reliability, public policy and resource adequacy but also it well addresses the long-term needs for a more economical and efficient power grid operation. The power system economic planning, using production simulation tool, evaluate the current and future state of bulk power grid and the economic impact of various projects to reduce the overall operation cost in the long run. GE Multi-Area Production Simulation (MAPS) is widely adopted to conduct various power system economic planning studies including renewable integration studies, market efficiency evaluation studies, transmission planning studies, and congestion assessment studies, etc. One of the major challenge of power system economic planning is to conduct long-term (i.e. 20-30 years) production simulation for large scale power systems. The big data analytics technology is a key to facilitate the state-of-the-art power system economic planning. This seminar introduces some major efforts GE is taking toward this new era. 2 - Resilience of Power Systems to Black Sky Hazards – Methods, Metrics and Thoughts Mathaios Panteli, The University of Manchester, Manchester, United Kingdom Recent extreme events, such as severe storms and earthquakes, have placed resilience in the spotlight for power system operators and regulators worldwide. Hence, there is a growing concern over the critical need to address and boost resilience to such disastrous events, which are referred to as Black Sky hazards. This talk will share experiences gained from relevant research projects in United Kingdom in the area of resilient power systems planning and operation. Amongst other, insights will be provided on conceptual frameworks, methods and metrics suitable for resilience analysis and further thoughts will be provided towards designing future resilient power systems.

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