The design of a chilled water plant involves selecting the size and type of chillers to be employed and determining the operating strategy. The types may include both gas engine and electric motor driven chillers. The issues that have to be considered in the selection problem are to incorporate external and internal factors into the decision making. External factors may include the utility rate schedules, the cooling load profile, and the outdoor temperature profile. Internal factors may include the chiller performance characteristics, initial and maintenance costs, and the chiller(s) operating strategy. A mathematical model representing the chilled water plant design problem is developed. The problem is approached as a mixed integer linear programming problem where non-linear chiller performance curves are transformed into linear constraints through the use of integer variables. The optimization task is to select the best cooling plant configuration and operating strategy to minimize life cycle cost. A solution procedure is developed which decomposes the optimization problem to reduce extensive computation time. Two case studies are provided to investigate the implementation of the mathematical model. / Master of Science

The petrochemical Industry is based upon the production of chemicals from petroleum and also deals with chemicals manufactured from the by products of petroleum refinery. At the preliminary stages of chemical plant development and design, the choice of chemical process route is the key design decision. In the past, economics were the most important criterion in choosing the chemical process route. Modified studies imply that the two of the important planning objectives for a petrochemical industry, environmental risk and the industrial safety involved in the development. For the economic evaluation of the industry, and for the proposed final chemicals products in the development, simple and clear economic indicators are needed to be able to indicate an overall economic gain in the development. Safety, as the second objective, is considered in this study as the risk of chemical plant accidents. Risk, when used as an objective function, has to have a simple quantitative form to be easily evaluated for a large number of possible plants in the petrochemical network. The simple quantitative form adopted is a safety index that enables the number of people affected by accidents resulting in chemical releases to be estimated. Environmental issues have now become important considerations due to the potential harmful impacts produced by chemical releases. In this study third objective of planning petrochemical industry was developed by involving environmental considerations and environmental risk index. Indiana Relative Chemical Hazard Score (IRCHS) was used to allow chemical industries routes to be ranked by environmental hazardous. The focus of this work is to perform early planning and decision-making for a petrochemical plants network for maximum economical gain, minimum risk to people from possible chemical accidents and minimum environmental risk. The three objectives, when combined with constraints describing the desired or the possible structure of the industry, will form an optimization model. For this study, the petrochemical planning model consists of a Mixed Integer Linear Programming (MILP) model to select the best routes from the basic feedstocks available in Kuwait -as a case study- to the desired final products with multiple objective functions. The economic, safety and environmental risk objectives usually have conflicting needs. The presence of several conflicting objectives is typical when planning. In many cases, where optimization techniques are utilized, the multiple objectives are simply aggregated into one single objective function. Optimization is then conducted to get one optimal result. This study, which is concerned with economic and risk objectives, leads to the identification of important factors that affecting the building-up of environmental management system for petrochemical industry. Moreover, the procedure of modelling and model solution can be used to simplify the decision-making for complex or large systems such as the petrochemical industry. It presents the use of simple multiple objective optimization tools within a petrochemical planning tool formulated as a mixed integer linear programming model. Such a tool is particularly useful when the decision-making task must be discussed and approved by officials who often have little experience with optimization theories

The petrochemical Industry is based upon the production of chemicals from petroleum and also deals with chemicals manufactured from the by products of petroleum refinery. At the preliminary stages of chemical plant development and design, the choice of chemical process route is the key design decision. In the past, economics were the most important criterion in choosing the chemical process route. Modified studies imply that the two of the important planning objectives for a petrochemical industry, environmental risk and the industrial safety involved in the development. For the economic evaluation of the industry, and for the proposed final chemicals products in the development, simple and clear economic indicators are needed to be able to indicate an overall economic gain in the development. Safety, as the second objective, is considered in this study as the risk of chemical plant accidents. Risk, when used as an objective function, has to have a simple quantitative form to be easily evaluated for a large number of possible plants in the petrochemical network. The simple quantitative form adopted is a safety index that enables the number of people affected by accidents resulting in chemical releases to be estimated. Environmental issues have now become important considerations due to the potential harmful impacts produced by chemical releases. In this study third objective of planning petrochemical industry was developed by involving environmental considerations and environmental risk index. Indiana Relative Chemical Hazard Score (IRCHS) was used to allow chemical industries routes to be ranked by environmental hazardous. The focus of this work is to perform early planning and decision-making for a petrochemical plants network for maximum economical gain, minimum risk to people from possible chemical accidents and minimum environmental risk. The three objectives, when combined with constraints describing the desired or the possible structure of the industry, will form an optimization model. For this study, the petrochemical planning model consists of a Mixed Integer Linear Programming (MILP) model to select the best routes from the basic feedstocks available in Kuwait -as a case study- to the desired final products with multiple objective functions. The economic, safety and environmental risk objectives usually have conflicting needs. The presence of several conflicting objectives is typical when planning. In many cases, where optimization techniques are utilized, the multiple objectives are simply aggregated into one single objective function. Optimization is then conducted to get one optimal result. This study, which is concerned with economic and risk objectives, leads to the identification of important factors that affecting the building-up of environmental management system for petrochemical industry. Moreover, the procedure of modelling and model solution can be used to simplify the decision-making for complex or large systems such as the petrochemical industry. It presents the use of simple multiple objective optimization tools within a petrochemical planning tool formulated as a mixed integer linear programming model. Such a tool is particularly useful when the decision-making task must be discussed and approved by officials who often have little experience with optimization theories

The management of large-scale transportation infrastructure is becoming a very complex task for the urban areas of this century which are covering bigger geographic spaces and facing the inclusion of connected and self-controlled vehicles. This new system paradigm can leverage many forms of sensing and interaction, including a high-scale mobile sensing approach. To obtain a high penetration sensing system on urban areas more practical and scalable platforms are needed, combined with estimation algorithms suitable to the computational capabilities of these platforms. The purpose of this work was to develop a transportation framework that is able to handle different kinds of sensing data (e.g., connected vehicles, loop detectors) and optimize the traffic state on a defined traffic network. The framework estimates the traffic on road networks modeled by a family of Lighthill-Whitham-Richards equations. Based on an equivalent formulation of the problem using a Hamilton-Jacobi equation and using a semi-analytic formula, I will show that the model constraints resulting from the Hamilton-Jacobi equation are linear, albeit with unknown integer variables. This general framework solve exactly a variety of problems arising in transportation networks: traffic estimation, traffic control (including robust control), cybersecurity and sensor fault detection, or privacy analysis of users in probe-based traffic monitoring systems. This framework is very flexible, fast, and yields exact results. The recent advances in sensors (GPS, inertial measurement units) and microprocessors enable the development low-cost dedicated devices for traffic sensing in cities, 5 which are highly scalable, providing a feasible solution to cover large urban areas. However, one of the main problems to address is the privacy of the users of the transportation system, the framework presented here is a viable option to guarantee the privacy of the users by design.

Closed-loop supply chains (CLSC) though present for decades, have seen significant research in optimization only in the last five years. Traditional sustainable CLSCs have generally implemented a Carbon Cap Trading (CCT), Carbon Cap (CC), or Carbon Taxes methodology to set carbon emissions limits but fail to minimize these emissions explicitly. Moreover, the traditional CCT model discourages investment in greener technologies by favoring established logistics over eco-friendly alternatives. This research tackles the sustainable CLSC problem by proposing a mixed-integer linear programming (MILP) carbon-conscious textit{p}-hub location model having the objective of minimizing emissions subject to profit constraints. The model is then extended to incorporate multi-periodicity, transportation modes, and end-of-life periods with a bi-objective cost and emissions function. Additionally, the model accounts for long-term planning and optimization, considering changes in demand and returns over time by incorporating a time dimension. The model's robustness and solving capabilities were tested for the case of electric vehicle (EV) battery supply chains. Demand for EVs is projected to increase by 18% annually, and robust supply chain designs are crucial to meet this demand, making this sector an important test case for the model to solve. Two baseline cases with minimum cost and minimum emissions objectives were tested, revealing a significant gap in emissions and underlining the need for an emissions objective. A sensitivity analysis was conducted on key parameters focusing on minimizing emissions; the analysis revealed that demand, return rates, and recycling costs greatly impact CLSC dynamics. The results showcase the model's capability of tackling real-world case scenarios, thus facilitating comprehensive decision-making goals in carbon-conscious CSLC design. / Master of Science / Closed-loop supply chain (CLSC) is a supply chain that recycles used products back to the manufacturer. CLSCs have been around for decades, but significant progress in optimizing them has only emerged over the last five years. Sustainable CLSC models often include limits on carbon emissions but usually don't directly minimize them. Traditional CLSC models tend to prioritize established logistics over greener technologies, discouraging investment in eco-friendly options. This study addresses this problem by introducing a mathematical model designed to minimize emissions while considering profit constraints. The model is expanded to factor in different time periods, transportation methods, and end-of-use phases with two goals in mind: cost and emissions. Additionally, it incorporates long-term planning, accounting for shifts in customer demand and product returns. The model's effectiveness was tested with electric vehicle (EV) battery supply chains, which serve as an important example given the predicted annual 18% growth in EV demand and the crucial need for efficient supply chain design. Two baseline scenarios were examined: one aiming to minimize costs and the other to minimize emissions. The results showed a notable disparity in emissions between the two, underscoring the importance of an emissions-focused objective. Key parameters, such as demand, return rates, and recycling costs, demonstrated a significant impact on CLSC operations. The findings highlight the model's ability to handle real-world challenges, enabling informed decision-making for designing carbon-conscious CLSCs.

The rising cost of military aircraft has driven the DoD to increase the utilization of commercial off-the-shelf (COTS) components in new acquisitions. Despite several demonstrated advantages of COTS-based systems, challenges relating to obsolescence arise when attempting to design and sustain such systems using traditional acquisition processes. This research addresses these challenges through the creation of an Agile Systems Engineering framework that is specifically aimed at COTS-based systems. This framework, known as the Cyber-physical Acquisition Strategy for COTS-based Agility-Driven Engineering (CASCADE), amends the traditional systems engineering process through the addition of an "identification phase" during which requirements are balanced against the capabilities of commercially-available components. The CASCADE framework motivates the creation of a new Mixed Integer Linear Programming (MILP) formulation which enables the creation of optimum obsolescence mitigation plans. Using this CASCADE MILP formulation, two sets of experiments are carried out: First, verification experiments demonstrate that the CASCADE MILP conforms to expected trends and agrees with existing results. Next, the CASCADE MILP is applied to a representative set of COTS-based systems in order to determine the appropriate level of obsolescence forecast accuracy, and to uncover new system-level cost-vs-reliability trends associated with COTS component modification.

Enticed by the promise of larger sales and better access to customers, consumer goods compa- nies (CGCs) are increasingly looking to evade traditional retailers and reach their customers directly–with direct-to-customer (DTC) policy. DTC trend has emerged to have major im- pact on logistics operations and distribution channels. It oers significant opportunities for CGCs and wholesale brands to better control their supply chain network by circumventing the middlemen or retailers. However, to do so, CGCs may need to develop their omni-channel strategies and fortify their supply chains parameters, such as fulfillment, inventory flow, and goods distribution. This may give rise to changes in the supply chain network at all strategic, tactical and operational levels. Motivated by recent interests in DTC trend, this master thesis considers the time-evolving supply chain system of an international healthcare company with preordained configuration. The input is bottleneck part of the company’s distribution network and involves 20% ≠ 25% of its total market. A mixed-integer linear programming (MILP) multiperiod optimization model is developed aiming to make tactical decisions for designing the distribution network, or more specifically, for determining the best strategy for distributing the products from manufacturing plant to primary distribution center and/or regional distribution centers and from them to customers. The company has got one manufacturing site (Mfg), one primary distribution center (PDP) and three dierent regional distribution centers (RDPs) worldwide, and the customers can be supplied from dierent plants with various transportation modes on dierent costs and lead times. The company’s motivation is to investigate the possibility of reduction in distribution costs by in-time supplying most of their demand directly from the plants. The model selects the best option for each customer by making trade-os among criteria involving distribution costs and lead times. Due to the seasonal variability and to account the market fluctuability, the model considers the full time horizon of one year. The model is analyzed and developed step by step, and its functionality is demonstrated by conducting experiments on the distribution network from our case study. In addition, the case study distribution network topology is utilized to create random instances with random parameters and the model is also evaluated on these instances. The computational experiments on instances show that the model finds good quality solutions, and demonstrate that significant cost reduction and modality improvement can be achieved in the distribution network. Using one-year actual data, it has been shown that the ratio of direct shipments could substantially improve. However, there may be many factors that can impact the results, such as short-term decisions at operational level (like scheduling) as well as demand fluctuability, taxes, business rules etc. Based on the results and managerial considerations, some possible extensions and final recommendations for distribution chain are oered. Furthermore, an extensive sensitivity analysis is conducted to show the eect of the model’s parameters on its performance. The sensitivity analysis employs a set of data from our case study and randomly generated data to highlight certain features of the model and provide some insights regarding its behaviour.

This thesis investigates different issues related to the issuance of debt by sovereign bodies such as governments, under uncertainty about the future interest rates. Several dynamic models of interest rates are presented, along with extensive numerical experiments for calibration of models and comparison of performance on real financial market data. The main contribution of the thesis is the construction and demonstration of a stochastic optimisation model for debt issuance under interest rate uncertainty. When the uncertainty is modelled using a model from a certain class of single factor interest rate models, one can construct a scenario tree such that the number of scenarios grows linearly with time steps. An optimization model is constructed using such a one factor scenario tree. For a real government debt issuance remit, a multi-stage stochastic optimization is performed to choose the type and the amount of debt to be issued and the results are compared with the real issuance. The currently used simulation models by the government, which are in public domain, are also reviewed. Apparently, using an optimization model, such as the one proposed in this work, can lead to substantial savings in the servicing costs of the issued debt

Management of systemic risk in financial markets is traditionally associated with setting (higher) capital requirements for market participants. There are indications that while equity ratios have been increased massively since the financial crisis, systemic risk levels might not have lowered, but even increased (see ECB data 1 ; SRISK time series 2 ). It has been shown that systemic risk is to a large extent related to the underlying network topology of financial exposures. A natural question arising is how much systemic risk can be eliminated by optimally rearranging these networks and without increasing capital requirements. Overlapping portfolios with minimized systemic risk which provide the same market functionality as empir- ical ones have been studied by Pichler et al. (2018). Here we propose a similar method for direct exposure networks, and apply it to cross-sectional interbank loan networks, consisting of 10 quarterly observations of the Austrian interbank market. We show that the suggested framework rearranges the network topol- ogy, such that systemic risk is reduced by a factor of approximately 3.5, and leaves the relevant economic features of the optimized network and its agents unchanged. The presented optimization procedure is not intended to actually re-configure interbank markets, but to demonstrate the huge potential for systemic risk management through rearranging exposure networks, in contrast to increasing capital requirements that were shown to have only marginal effects on systemic risk (Poledna et al., 2017). Ways to actually incentivize a self-organized formation toward optimal network configurations were introduced in Thurner and Poledna (2013) and Poledna and Thurner (2016). For regulatory policies concerning financial market stability the knowledge of minimal systemic risk for a given economic environment can serve as a benchmark for monitoring actual systemic risk in markets.

Neste trabalho foi desenvolvido um modelo de programação linear inteira mista para localização das instalações da rede logística do biodiesel no Brasil, de forma a que se possa, com sua aplicação, avaliar o potencial de produção de oleaginosas no país, assim como identificar as zonas mais promissoras para a localização dos diversos elos da cadeia do biodiesel, a partir da demanda gerada pela mistura de um percentual de biodiesel ao diesel fóssil. O modelo incorpora quatro elos da cadeia produtiva (fase agrícola, extração de óleo, produção de biodiesel e pontos de demanda). Os parâmetros do modelo foram estimados com base em informações reais de mercado disponíveis (base de dezembro/2007). Obteve-se com a aplicação do modelo a diversos cenários, os municípios mais indicados para produção das oleaginosas, as oleaginosas utilizadas, o volume de produção em cada local e, por fim, a localização e porte das fábricas de óleo e das usinas de biodiesel. Análises de sensibilidade de alguns parâmetros foram executadas para verificação do comportamento do modelo face a incertezas. O trabalho incorpora sugestões e recomendações para aprimoramento do modelo. / In this research a mixed integer linear programming model was developed to locate facilities related to the biodiesel supply chain in Brazil, making possible to evaluate the oleaginous production potential, as well as the most promising regions to became the location of the several levels of the biodiesel chain, in accordance to the biodiesel future demand. The model incorporates four levels of the productive chain (agricultural phase, extraction of oil, biodiesel production and demand points). The model parameters were estimated based on market information available (base of december/2007). The application of the model to several sceneries led to the indication of the most promising regions for production of the oleaginous, the used oleaginous ones, the volume of production in each place and, finally, the location and scale of oil and biodiesel factories. Sensibility analyses were conducted to verify the results related to parameters uncertainty. The research contains suggestion and recommendations for improvement of the model.