Cost Optimal Segregated Targeting Problems with Dedicated Sources

Abstract

Pinch analysis is a well-established technique to achieve sustainable development through conservation of various resources. The techniques of pinch analysis are also applied for cost minimisation in several problems as cost-effectiveness plays a major role in decision making for any industry. In this paper, cost optimality of a special kind of resource allocation problem, called segregated targeting problem with dedicated sources, is addressed. A segregated targeting problem consists of multiple set of demands called zones and a set of common internal sources. Dedicated sources are the internal sources which are specific to a zone in which they are present and are not shared with other zones. A mathematically rigorous methodology is developed in this paper and a quantity with the dimension of per unit cost that sets the preference for the distribution of flow from different sources to demands is identified. The applicability of the proposed methodology is demonstrated through three illustrative examples from diverse domains: carbon constrained energy sector planning, water allocation network, and integrated iron and steel mill.