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research-article

Demand Response Driven Production and Maintenance Decision Making for Cost Effective Manufacturing

[+] Author and Article Information
Fadwa Dababneh

Department of Mechanical and Industrial Engineering, University of Illinois at Chicago, Chicago, IL 60607, USA
fdabab2@uic.edu

Lin Li

Department of Mechanical and Industrial Engineering, University of Illinois at Chicago, Chicago, IL 60607, USA
linli@uic.edu

Rahul Shah

Department of Mechanical and Industrial Engineering, University of Illinois at Chicago, Chicago, IL 60607, USA
rshah204@uic.edu

Clifford Haefke

Energy Resources Center, University of Illinois at Chicago, Chicago, IL 60607, USA
chaefk1@uic.edu

1Corresponding author.

ASME doi:10.1115/1.4039197 History: Received September 04, 2017; Revised January 26, 2018

Abstract

The industrial sector consumes 27% of the total electricity in the United States and is one of the main contributors to the rising demand. End user electricity demand response is an effective demand side management tool that brings benefits to both energy suppliers and users. While energy suppliers can mitigate grid reliability loss and reduce electricity generation expenditures; manufacturers can decrease energy cost. Several studies focusing on demand response implementation in the industrial sector have been conducted. Unfortunately, these studies are not vigorous enough for integrating demand response into production decision making because of failing to consider maintenance, which can lead to infeasible production schedules and lost cost savings opportunities. Thus, in this paper, a cost effective production and maintenance scheduling model considering a time-of-use demand response program is presented. Additionally, an aggregate cost per part model is formulated which considers maintenance and demand response parameters in the same function, and can be used to study the behavior and impact of different system level parameters (e.g., production rate, rated power demand, etc.) on the cost. A numerical case study is performed and illustrates that the proposed scheduling strategy can achieve significant cost savings compared to baseline scheduling scenarios. Furthermore, the benefits of adopting demand response driven production and maintenance scheduling under different cost and parameter settings are investigated.

Copyright (c) 2018 by ASME
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