Distribution free approach on electrical energy supply chain using geometric shipment policy

Abstract

We propose an inventory based optimisation model for a system of electricity supply chain. This distribution system consists of power plant, transmission substation and distribution substations and customers. The electricity generated by the power plant is transmitted to the submission and distribution substations and finally consumed by the customers. We apply the inventory theory to the distribution system and assume the electricity demand follows a distribution-free approach. This distribution system concerns the geometric shipment policy that is the size of each shipment is a multiple of the first shipment size. In particularly, two types of lead time crashed concepts are considered in this model. The main objective of this model is to find an optimal solution of first shipment lot size, blackout cost and simultaneously minimising the joint expected total cost. An iterative technique is used to find an optimal solution numerically and a sensitivity analysis table is presented to show the impact of different parameters

Keywords

• electrical energy supply chain
• distribution-free approach
• lead time reduction
• optimisation
• inventory control