Energy costs vs. carbon dioxide emissions in short-term production planning

Andreas Dellnitz (), Damian Braschczok, Jonas Ostmeyer, Markus Hilbert and Andreas Kleine
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Andreas Dellnitz: FernUniversität in Hagen, Chair of Operations Research
Damian Braschczok: FernUniversität in Hagen, Chair of Operations Research
Jonas Ostmeyer: FernUniversität in Hagen, Chair of Operations Research
Markus Hilbert: FernUniversität in Hagen, Chair of Operations Research
Andreas Kleine: FernUniversität in Hagen, Chair of Operations Research

Journal of Business Economics, 2020, vol. 90, issue 9, No 5, 1383-1407

Abstract: Abstract In energy-oriented lot-sizing and scheduling research, it is often assumed that minimizing energy costs automatically leads to an improvement of the ecological footprint of a company, i.e., lower carbon dioxide emissions. More precisely, a close to one (positive) correlation between energy costs and carbon dioxide emissions is often supposed. In this contribution, we show that this conjecture does not always hold true due to fluctuating carbon dioxide emissions over the whole day. Therefore, we present a real-world business case study, combining lot-sizing and machine scheduling under time-varying electric energy costs and carbon dioxide emissions in a mixed integer optimization model; in this context, we also consider on-site power generation. The interplay between all these aspects is demonstrated via a numerical analysis.

Keywords: Energy costs; Carbon dioxide emissions; Multi-objective production planning; Sustainable manufacturing (search for similar items in EconPapers)
JEL-codes: C61 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11573-020-01000-1

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