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Prerequisites of efficient decentralized waste heat recovery and energy storage in production planning

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Abstract

Following the scarcity of resources, rising energy prices, and an increasing awareness of the role manufacturing plays in the generation of greenhouse gas emissions, the usage of energy has more and more been considered in research on production planning and scheduling in recent years. Time-varying energy prices, which have been introduced to penalize energy usage during peak-demand periods and which are supposed to smooth energy demand, have added a new aspect to this stream of research. This article studies how the integration of a waste heat recovery system, which can convert industrial waste heat into electrical energy, along with an electrical energy storage system can balance the positive and negative effects of energy peak prices on the production plan in a serial multi-stage production system. After developing an appropriate model, we investigate how the use of the waste heat recovery system and the electrical energy storage system impact production planning. In a numerical analysis, we investigate under which conditions the recovery of waste heat combined with the opportunity to store energy provides practitioners with an efficient tool to lower total energy usage and to better react to time-varying energy prices, and thus to reduce total energy cost.

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Acknowledgments

The authors are grateful to the anonymous referees, whose valuable comments on an earlier version of this paper helped to improve this work significantly. The authors further wish to acknowledge the support of the Carlo and Karin Giersch-Stiftung in funding their research.

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  1. Institute of Production and Supply Chain Management, Technische Universität Darmstadt, Hochschulstr. 1, 64289, Darmstadt, Germany

    Konstantin Biel & Christoph H. Glock

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Correspondence to Konstantin Biel.

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Appendix

Appendix

Linearization constraints:

$$\chi_{m,r,u,t} \le S_{m,r,t}^{PS} ,\quad \forall m \in \left\{ {1,2, \ldots ,M} \right\},\quad t \in \left\{ {1,2, \ldots ,T} \right\},\quad r \in OM,\quad u \in ES$$
(A.1)
$$\chi_{m,r,u,t} \ge 0,\quad \forall m \in \left\{ {1,2, \ldots ,M} \right\},\quad t \in \left\{ {1,2, \ldots ,T} \right\},\quad r \in OM,\quad u \in ES$$
(A.2)
$$\chi_{m,r,u,t} \le S_{u,t}^{EESS} ,\quad \forall m \in \left\{ {1,2, \ldots ,M} \right\},\quad t \in \left\{ {1,2, \ldots ,T} \right\},\quad r \in OM,\quad u \in ES$$
(A.3)
$$\chi_{m,r,u,t} \ge S_{u,t}^{EESS} - \left( {1 - S_{m,r,t}^{PS} } \right),\quad \forall m \in \left\{ {1,2, \ldots ,M} \right\},\quad t \in \left\{ {1,2, \ldots ,T} \right\},\quad r \in OM,\quad u \in ES$$
(A.4)

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Biel, K., Glock, C.H. Prerequisites of efficient decentralized waste heat recovery and energy storage in production planning. J Bus Econ 87, 41–72 (2017). https://doi.org/10.1007/s11573-016-0804-x

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