Improvement in procurement through energy resource planning for manufacturing organisation

Iram Naim, Tripti Mahara and Ashraf Rahman Idrisi

International Journal of Business Excellence, 2020, vol. 22, issue 4, 451-473

Abstract: A manufacturing organisation performs planning for optimal utilisation of their resources. Energy resource planning plays a key role for energy intensive organisations to manage their energy resources efficiently. In India, procurement of energy resource especially for natural gas requires procurement contract from supplier. The imbalances between the upcoming future requirements predicted by buyer and its actual consumption always attract additional charges in form of penalty. This paper focuses on how energy resource planning combined with procurement can benefit a manufacturing organisation through effective forecast mechanism in order to decide the critical level for procurement of natural gas. Furthermore, the realisation of energy resource planning benefits during procurement of natural gas by deciding the optimal value of gas purchase is also illustrated through a case study of CFFP, BHEL Haridwar, a manufacturing organisation in India.

Keywords: manufacturing organisation; energy resource planning; procurement; forecasting; time series; cross-validation; ARIMA; natural gas; penalty; contract agreement. (search for similar items in EconPapers)
Date: 2020
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