Abstract
In order to identify the optimal structure of an electricity power network under the main assumption of a price dependent demand of electrical energy, we presented an optimization model that aims at analyzing the effect of price-dependent demand on the sustainable electrical supply chain system (SESCS). The system included a power generation system, transmission and distribution substations, and many customers. The electrical energy was generated and transmitted through multiple substations to our customers, and the demand for electricity by the customers is dependent on the price of electricity. In the study, we considered the transmission and the distribution costs which depend on the capacities of power generation, transmission rates and distances between stations. We utilized the inventory theory to develop our model and proposed a procedure to derive an optimal solution for this problem. Finally, numerical examples and sensitivity analysis are provided to illustrate our study and consolidate managerial insights.
Highlights
In recent years, the consumption of electricity has increased rapidly
The variations in electricity price can influenced the demand for electricity
The purpose of our study is to analyze the effect of price-dependent demand on the sustainable electrical supply chain system (SESCS)
Summary
The consumption of electricity has increased rapidly. Total electricity consumption in the U.S in 2015 was more than times greater than in 1950 [1]. Ouedraogo [15] developed an electricity supply-demand model for the African power systems. The purpose of our study is to analyze the effect of price-dependent demand on the sustainable electrical supply chain system (SESCS). The power is transmitted through distribution networks to multiple customers whose demands are influenced by the price of electricity. It is shown that determining the capacity of SESCS has the same process or analogy as determining the order quantity in the Supply Chain Inventory System (SCIS). In SESCS, electricity generated in a power generation will be transmitted through a transmission line and distribution substation to the customers whose demands are influenced by the price of electricity.
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