Operations scheduling under electricity time-varying prices
Global climate change requires stakeholders to consider energy elements in their decision-making. Electricity costs, in particular, constitute a significant portion of operational costs in most manufacturing systems. The electricity bills can be lowered if electricity-consuming operations are correctly scheduled. We consider a manufacturing operations control problem with known time-varying electricity prices in a finite planning horizon. Each operation is unique and has its own concave electricity consumption function. Pre-emptions of operations are allowed, yet postponing an operation incurs a cumulative penalty for each time period. In addition, each pre-emption is considered a new operation. The electricity cost in each time period is exogenous and there exists a capacity constraint on the total electricity amount consumed in each period due to infrastructure and provider’s limitations. There is a fixed start-up cost incurred for switching on the machine and a fixed reservation cost incurred for keepi...