Strategic role of capacity management in electricity service centre using Markovian and simulation approach

Sony Michael and V. Mariappan

International Journal of Business and Systems Research, 2012, vol. 6, issue 1, 59-88

Abstract: In today’s competitive power market integrated with industrial growth, capacity management becomes a perennial technical issue. Power utilities lose customers when they lack sufficient capacity to provide their demanded service which severely affects the business process of the industries. Interruption time is one of the key characteristics of quality service and customer satisfaction. While additional capacity improves service quality, but the cost for providing capacity increases. Thus, the capacity management is having a conflicting role with the utility effectiveness. The important strategy role of capacity management should be arriving at a point wherein it is optimally economical and maximising the customer satisfaction. A live case of Electrical Service Centre of Goa Electricity Department is modelled using Markov model by a code written in MATLAB 7.0 and the working of Electrical Service Centre was modelled in general purposes simulation system. Results, conclusions and future scope are discussed.

Keywords: capacity management; process-oriented approaches; system simulation; service modelling; GPSS; general purpose simulation system; discrete event simulation; electricity generation; service centres; power interruptions; business process simulation; customer satisfaction; Andrey Markov; decision processes; Markovian approaches; competitive markets; industrial growth; power utilities; customers; demanded services; interruption time; service quality; additional capacity; increased costs; utility effectiveness; Goa Electricity Department; India; MATLAB; matrix laboratory; systems research. (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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