Manufacturers consume about 27% of the total electricity in the U.S. and are among the main contributors in the rising electricity demand. End-user electricity demand response is an effective demand side management tool that can help energy suppliers reduce electricity generation expenditures while providing opportunities for manufacturers to decrease operating costs. Several studies on demand response for manufacturers have been conducted. However, there lacks a unified production model that balances production capability degradation, maintenance requirements, and time-of-use (TOU) electricity prices simultaneously such that the interaction between production, maintenance, and electricity costs is considered. In this paper, a cost-effective production and maintenance scheduling model considering TOU electricity demand response is presented. Additionally, an aggregate cost model is formulated, which considers production, maintenance, and demand response parameters in the same function. The proposed models provide manufacturers with tools for implementing feasible and cost-effective demand response while meeting production targets and efficiently allocating maintenance resources. A case study is performed and illustrates that 19% in cost savings can be achieved when using the proposed model compared to solely minimizing the electricity billing cost. In addition, 14% in cost savings can be achieved when using the proposed model compared to a strategy where only the maintenance cost is minimized. Finally, the benefits of demand response driven production and maintenance scheduling under different cost and parameter settings are investigated; where the rated power, production rate, and initial machine production capability show to have the largest impact on the cost effectiveness of implementing demand response.
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June 2018
Research-Article
Demand Response-Driven Production and Maintenance Decision-Making for Cost-Effective Manufacturing
Fadwa Dababneh,
Fadwa Dababneh
Department of Mechanical and
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: fdabab2@uic.edu
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: fdabab2@uic.edu
Search for other works by this author on:
Lin Li,
Lin Li
Department of Mechanical and
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: linli@uic.edu
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: linli@uic.edu
Search for other works by this author on:
Rahul Shah,
Rahul Shah
Department of Mechanical and
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: rshah204@uic.edu
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: rshah204@uic.edu
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Cliff Haefke
Cliff Haefke
Search for other works by this author on:
Fadwa Dababneh
Department of Mechanical and
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: fdabab2@uic.edu
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: fdabab2@uic.edu
Lin Li
Department of Mechanical and
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: linli@uic.edu
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: linli@uic.edu
Rahul Shah
Department of Mechanical and
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: rshah204@uic.edu
Industrial Engineering,
University of Illinois at Chicago,
Chicago, IL 60607
e-mail: rshah204@uic.edu
Cliff Haefke
1Corresponding author.
Manuscript received September 4, 2017; final manuscript received January 26, 2018; published online March 13, 2018. Assoc. Editor: Karl R. Haapala.
J. Manuf. Sci. Eng. Jun 2018, 140(6): 061008 (11 pages)
Published Online: March 13, 2018
Article history
Received:
September 4, 2017
Revised:
January 26, 2018
Citation
Dababneh, F., Li, L., Shah, R., and Haefke, C. (March 13, 2018). "Demand Response-Driven Production and Maintenance Decision-Making for Cost-Effective Manufacturing." ASME. J. Manuf. Sci. Eng. June 2018; 140(6): 061008. https://doi.org/10.1115/1.4039197
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