Managing Electricity Peak Loads in Make‐To‐Stock Manufacturing Lines

• DOI: 10.1111/poms.12570
• Publication Date: 2016-05-03T06:53:42Z
• Authors: Felix Papier
• Keywords: Stock (firearms); Manufacturing

In this article, we study the control of stochastic make‐to‐stock manufacturing lines in presence electricity costs. Electricity costs are difficult to manage because unit increase with total load, that is, amount needed by line at a certain point time. We demonstrate standard methods for controlling cannot be used and analytic results do not hold develop policy balances inventory holding backorder derive closed‐form expressions properties expected cost two workstations accuracy robustness more than workstations. The indicate avoiding peak loads requires additional investment capacity higher Our approach also applies companies which aim reducing their carbon emissions addition operating