Industrial & Engineering Chemistry Research, Vol.49, No.1, 260-275, 2010
Operational Planning of Large-Scale Industrial Batch Plants under Demand Due Date and Amount Uncertainty: II. Conditional Value-at-Risk Framework
A novel framework based on conditional value-at-risk theory has been applied to the problem of operational planning for large-scale industrial batch plants under demand due date and amount uncertainty. The nominal planning with production disaggregation model has been extended by means of conditional value-at-risk theory to address the objectives of providing a daily production profile that not only is a tight upper bound on the production capacity of the plant but also is immune to the various forms of demand uncertainty. An industrial case Study was conducted to demonstrate the viability of the proposed approach, which involves the novel application of conditional value-at-risk theory to the problem of operational planning under demand due date and amount uncertainty. A comparative Study that juxtaposes the proposed operational planning model and the robust operational planning With production disaggregation model presented in part I of this series of articles (Verderame and Floudas Ind. Eng. Chem. Res. 2009, 48, 7214) is introduced as well.