An inventory-based integrated model of a hybrid electricity supply chain for sustainable electricity storage management

Abstract

This study introduces an integrated distribution system consisting of a transmission station, power plant, and prosumers. The electricity demand from the customers is known and assumed to be normally distributed. The transmission station is responsible for delivering the electricity to the end-users produced by the power plant and prosumer microgrid in parallel. The prosumers are consumers of electricity with the ability to generate electricity on their own through renewable electricity generation. Differential calculus is applied to obtain the total cost of each supply chain node, and a comprehensive joint total cost is obtained from these equations. The objective function is to minimize the system's total cost consisting of the transmission cost, production cost, inventory holding cost, and emissions cost. A continuous review policy is used by the transmission station to fulfill the stochastic demand. An iterative method is developed to solve the problem followed by a comprehensive sensitivity analysis to observe the effects of some key parameters on the proposed model.