Profitability Of Systems Research Articles

Manufacturer's cooperative recycling strategies considering the negative externality of unrecycled products: Non‐cooperative, fund‐cooperative, or labour‐cooperative

AbstractThis paper proposes a new objective function for manufacturer considering the negative externality of unrecycled products (NEUP), and develops three cooperative recycling modes: non‐cooperative, fund‐cooperative and labour‐cooperative. Results indicate that compared to non‐cooperative, while fund‐cooperative can enhance the recycling rate, it hurts the system's profitability. In contrast, labour‐cooperative can achieve a win–win situation for both. Moreover, considering NEUP expands the dominant space of fund‐cooperative in recycling rate, but weakens its advantage in market demand. Notably, considering NEUP may render cooperative recycling ineffective in improving profit, which largely depends on the degree of considering NEUP and recycling cost coefficient ratio.

Does outsourcing enhance consumer services and profitability of a dual-channel retailing?

In the era of digital commerce, the concept of dual-channel retailing has attracted increased attention. Dual-channel retailing increases the importance of outsourcing for an imperfect production process to enhance customer satisfaction. This study explores a sustainable dual-channel retailing strategies for an imperfect production process under a flexible production system. The manufacturer runs a production process prone to defects utilizes both offline and online channels for product sales. The manufacturer contemplates green investments to enhance the production efficiency and reduce waste and carbon emissions, alongside the possibility of outsourcing a portion of production to a partner. A mathematical model is developed to accounts for these factors and analyzes the optimal allocation of products between channels, pricing strategies, production rates, and investments amount to reduce carbon emissions. The model incorporates demand sensitiveness to green practices and channel's selling price. Results of this research are directed towards offering significant perspectives for organizations that aspire to attain a harmonious equilibrium among financial profitability, ecological sustainability, and addressing deficiencies in their manufacturing procedures in a dual-channel retail setting through subcontracting. Numerical illustrations exhibit that partial outsourcing enhances system's profit by 2.03%, whereas investments to reduce carbon emissions enhance the profit by 4.95%. Flexibility in the production process helps to increase the profit by 13.50%, and channel coordination helps to enhance the profit by 38.54%.

Inventory rationing, admission control, and production capacity allocation in a make‐to‐stock/make‐to‐order manufacturing system

AbstractThis paper considers a manufacturing system in which products are produced in both make‐to‐stock (MTS) and make‐to‐order (MTO) modes. Production of MTS and MTO products is done in batches, incurs a setup cost, and is non‐preemptive. The inventory of MTS products fulfills the demand of multiple classes, and each class demand can be satisfied or rejected. Customer orders for MTO production can be accepted or rejected, and their size is the same as the production batch. The primary goal of this paper is to study a policy that coordinates inventory rationing, admission control, and production capacity allocation to maximize the system's profit. We formulate the problem as a Markov decision process model and identify the structure of optimal control policies. We investigate the effect of inventory rationing on the profit by comparing its performance to that of the system with a first‐come‐ first‐serve policy to allocate inventory to multiple demand classes and study the extent to which the benefit of inventory rationing can be affected by system parameter changes. We also propose a heuristic that manages control decisions from linear threshold functions. Our test results from numerical examples show that the average percentage difference between the optimal and heuristic policies is within 1.2%.

A hybrid building-integrated solar-powered anaerobic digestion system: Energy, economic, and environmental analysis in Morocco

In this study, we propose a hybrid solar-anaerobic digestion system for a cleaner energy in the building sector. This system offers sustainable treatment of organic waste, utilizing waste generated by residential buildings. We conducted an investigation into the energy, economic, and environmental aspects of integrating a hybrid solar anaerobic digester treating kitchen waste (KW) and blackwater (BW) into Moroccan residential buildings under different climatic conditions. Two building categories were considered: buildings compliant with Moroccan thermal regulations of construction (MTRC), and non-compliant buildings, which represent the majority in Morocco. Results indicate that the proposed hybrid system, utilizing only waste generated by the building, can, on average, satisfy approximately 26 % of the total heating, cooling, and electricity needs of the considered MTRC non-compliant buildings. As for the MTRC compliant buildings, about 30 % of the total energy needs are met. Simulation outcomes also demonstrate that increasing the quantity of organic waste enhances system autonomy, allowing it to meet 100 % of the energy demand of the studied buildings. Excess heat energy generated by the hybrid system was allocated to the buildings' thermal and domestic hot water demands. Furthermore, the study highlights the significant influence of fixed costs and waste quantity on the system's profitability. Environmental benefits were also evident, with the designed hybrid system reducing CO2 emissions by 66 % compared to using grid electricity.

Modelling mobility as a service: A literature review

MaaS (Mobility as a Service) is often presented as a means to solve some of the most pressing mobility issues such as car dependency and increasing vehicular greenhouse gas emissions. In this context, adequate models and simulations are key to estimating the impact of potential MaaS implementations and support decision-making to reap the benefits MaaS could bring. This article aims at reviewing MaaS representation in existing academic literature pertaining to transportation modelling, in order to assess its progress and identify trajectories for future improvements. We do so by considering mobility as an economic system in which MaaS interacts with both travel demand and supply. After identifying an adequate set of indicators to analyze MaaS models, we review 31 contributions and find out that most studies consist of demand-centered usage models while the integration of the system's supply side's operational and profitability factors is still lacking, especially in-MaaS financial flows.

Interplanted crops and rainfall variability regulate soil erosion in rainfed maize of the Indian Himalayas

AbstractSoil erosion is a serious threat to agriculture and environmental sustainability in the risk‐prone rainfed Himalayan ecosystem. Hence, runoff and soil loss mitigation ability of four maize‐based intensified systems; maize (Zea mays) + turmeric (Curcuma longa), maize + ginger (Zingiber officinale), maize + colocasia (Colocasia esculenta), and maize + sweet potato (Ipomoea batatas) were tested against the sole maize. The study recorded 41 erosive events during the 2020–2022 monsoon season. A principal component analysis (PCA) was performed to transform correlated rainfall parameters into orthogonal principal components. A two‐dimensional biplot analysis examined the relationship between PCs, rainfall events, and rainfall parameters. The rainfall events were divided into three regimes based on cluster analysis using PC. Rainfall regime 1 was characterized by low rainfall, I30, rainfall erosivity (E), and moderate rainfall duration (D), regime2 with moderate rainfall, short duration, high I30, and E, and regime3 with high D, I30, and rainfall erosivity. The soil loss of regime‐3 was 9.29 and 3.24 times higher than regime‐1 and regime‐2, respectively. Cover crops reduced runoff by 21.5%–69.3% and soil loss by 54.1%–77.0% over control. Redundancy analysis (RDA) showed that rainfall parameters (I30, I60, D, and E) had a significant direct influence across the systems, explaining 37.7%–54.9% of response variable variance, with E being the most influential (47.4%–54.9%), indicating varied impacts on runoff and soil loss. The sweet potato was best suited with maize as an intercrop to minimize soil erosion and maximize the system's profitability.

Continuous increasing consumer service for multi-item dual-channel retail management

Along with the advancement of technology and consumer expectations, online-to-offline retailing is seeking attention in the retailing industries. Online-to-offline retailing is a powerful strategy that bridges the gap between the convenience and reach of online shopping with the tangible experience and service of physical stores. Customer satisfaction and brand loyalty are basic pillars to enhance profit for the retail industry. Providing different services like repairs, exchanges, and home delivery enhances customer satisfaction and builds trust in the particular industry. In e-commerce, the importance of delivery service is emphasized, with fast and reliable delivery being a key factor in customer satisfaction. An online-to-offline retailing system for multiple items is developed in this study by considering consumer service efficiency demand. A pricing strategy that relies on the channel of distribution and the impact of advertising on consumer demand is taken into account. The manufacturer offers complimentary home delivery services for orders surpassing a specified threshold. To implement advanced technologies, a huge budget is required. To make the study realistic, a budget and space are considered. The retailing system's total profit is ultimately maximized by determining the optimal values for selling price, advertisement investment, customer care costs across various channels, ordering quantity, and investment to minimize setup costs for different items. A classical optimization approach is employed to derive a semi closed-form solution for the proposed model. Sensitivity analysis and examination of special cases are provided to demonstrate the practicality of this research. Through numerical illustrations, it is established that the profit maximization occurs when the defective rate adheres to a Chi-square distribution. Imposing budget and space restrictions leads to a 19.91% increase in system profit while offering free home delivery services boosts the profit by 15.77%.

Co-incorporation of Black Soldier Fly (Hermetia illucens) Larvae and Moringa (Moringa oleifera) Leaves in the Diet Increase African Catfish Profitability (Clarias gariepinus)

Aquaculture is a fast-growing activity in Cameroon and required substantial quantities of affordable protein-rich feed. In this study, we co-incorporated Moringa leaves (MOL) and black soldier fly larvae meal (BSFLM) in catfish diet, and the effect was evaluated on feed floatation, fish growth, flesh organoleptic qualities and profitability. 450 juvenile`s catfish weighing averagely 10 g, were subjected to five dietary treatments consisting of: T0 (0% BSFLM and 0% MOL); T1 (6.25% BSFLM and 5% MOL); T2 (12.5% BSFLM and 10% MOL); T3 (18.75% BSFLM and 15% MOL) and T4 (25% BSFLM and 20% MOL) for 119 days. The treatment T3 containing 18.75% BSFLM and 15% MOL recorded the highest floatation duration, fish weight (113.83±17.31 g) and weight gain (103.25±17.8 g), and the lowest feed conversion ratio (1.60±0.37). The flesh tasted good and was acceptable in all treatments. Incorporating BSFLM and MOL in the diets reduced the cost per kg of feed from 18 to 23%, thus increasing the system's profitability from 45.91 to 60.84%. We concluded that BSFLM and MOL can partially substitute fish meal in catfish diet and improve the profitability and offers insights into the development more profitable and sustainable aquaculture in Cameroon and globally.

Emission reduction investment for green products of a manufacturing system via optimal control theory and artificial hummingbird algorithm

Now, due to the global industrialization, carbon emission from the industrial section imposes a severe impact on the current environment. Due to the increasing awareness of environmental and sustainability issues, green products, also known as eco-friendly, include a considerable impact on the today’s market economy. Keeping mind of these two important issues of the current scenario, a production inventory model is developed in which time-dependent production rate is considered. In this work, the level of greenness of the products, selling price and time, influences the customers’ demand rate. Again, two different cases are considered due to the business assimilation of defectively manufactured items: rework and salvage policies. Additionally, the company uses pollution reduction technologies to lower emissions from the manufacturing firms in order to lower emission taxes. The Euler-Lagrange equation is used to solve an optimal control problem that arises in the model as time-dependent production rate is taken into the account. The optimisation problem corresponding to the proposed model is solved with the help of artificial hummingbird algorithm (AHA) as the system's average profit functions for both of the considered scenarios are highly nonlinear in nature w. r. to its decision variables. Further, the results obtained from AHA are compared with the help of other well-known metaheuristics. Finally, sensitivity analysis is conducted to arrive at meaningful conclusions and implications for the competent manager of the manufacturing firm.

Performance Analysis of Feeding System in Sugar Mill with Consideration of Bagasse Jamming

Objectives: The sugar industry comprises various units, including feeding, crushing, evaporation, refining, and crystallization. The feeding system is the most crucial aspect of the sugar mill as the sugar-making process starts from here. So faults which occur here are divided into four categories minor, major, cease faults and walkout faults. This paper sets out to showcase a comprehensive analysis of the system's performance, availability, and profit. The study takes into account how minor, major, and cease faults can potentially impact the system's overall effectiveness. The findings of this research hold significant importance for sugar mills that prioritize optimal performance and profit. Methods: Primary data regarding various failures is collected from Ch. Devilal Co-Operative Sugar Mills Limited, Ahulana, Gohana. To find MTSF, Reliability, Availability, Profit etc., a mathematical model has been created. This model is based on the Semi-Markov process and Regenerative Point Technique and equations are drawn using exponential distribution and solved with Cremer’s rule and Laplace ­- Stieltjes transformation. Findings: A fault, Bagasse Jamming is considered a cease fault which occurs very frequently in the feeding system. Therefore, it is found that cease faults and major faults have more adverse impacts on the system's performance and availability than minor faults. MTSF, Availability and Profit are inversely proportional to these faults. When a major fault is 0.0035 and the cease fault is 0.0042, MTSF is nearly 100. So, to gain more profit we have to pay more attention to these faults. Novelty: The paper's results will aid in fault removal, increase availability, and optimize maintenance tactics in the sugar industry. Keywords: MTSF, Performance Analysis, Availability, Reliability, Minor, Major, Cease Faults

Multi‐factor Analysis of Capacity Allocation Optimization for Novel Wind‐Hydrogen Coupled Power Generation Systems

Wind power generation has the problem of wind resource waste. Wind‐hydrogen coupled can enhance wind power's utilization and revenue. Currently, there is no discussion of the impact of multiple factors on the system configuration. In this study, take the annual profit of the wind‐hydrogen coupled power generation systems (WHCPGS) as the objective function, and construct the multi‐factor capacity configuration model. Using particle swarm optimization (PSO) to solve the model, and analyzes the impact of multi‐factors on the system's annual profit and revenue mode. The results show that with 30 wind turbines, the coupled system annual profit increases by 43% compared to the alone system. The higher investment does not make the system more rewarding. The configuration results are the same for investments of 0.8 billion ¥ and 1 billion ¥. The price at 0.20 ¥ kW−1 h−1, the coupled system has the optimal annual profit. Fuel cells’ (FCs) electricity price and hydrogen transportation distance are crucial factors influencing the mode of the system profit. This study has specific reference significance for the practical application of capacity configuration of the system.

Data-driven assisted real-time optimal control strategy of submerged arc furnace via intelligent energy terminals considering large-scale renewable energy utilization

This study presents a data-driven assisted real-time optimization model which is an innovative approach to address the challenges posed by integrating Submerged Arc Furnace (SAF) systems with renewable energy sources, specifically photovoltaic (PV) and wind power, with modern intelligent energy terminals. Specifically, the proposed method is divided into two stages. The first stage is related to data-driven prediction for addressing local time-varying renewable energy and electricity market prices with predicted information, and the second stage uses an optimization model for real-time SAF dispatch. Connections between intelligent energy terminals, demand-side devices, and load management systems are established to enhance local renewable resource utilization. Additionally, mathematical formulations of the operating resistance in SAF are explored, and deep neuron networks are employed and modified for dynamic uncertainty prediction. The proposed approach is validated through a case study involving an intelligent energy terminal with a 12.5 MVA SAF system and 12 MW capacity renewable generators in an electricity market with fluctuating prices. The findings of this research underscore the efficacy of the proposed optimization model in reducing operational costs and enhancing the utilization of localized renewable energy generation. By integrating four distinct dissatisfaction coefficients into the optimization framework, we demonstrate the model's adaptability and efficiency. The application of the optimization strategy delineated herein results in the SAF system's profitability oscillating between $111 and $416 across various time intervals, contingent upon the coefficient settings. Remarkably, an aggregate daily loss recovery amounting to $1,906.84 can be realized during the optimization period. Such outcomes not only signify considerable economic advantages but also contribute to grid stability and the diminution of renewable energy curtailment, thereby underscoring the dual benefits of economic efficiency and sustainability in energy management practices.

Structural rearrangement of the network system from an efficiency perspective: A silver lining of profit improvement

Previous studies on profit improvement mainly consider improving traditional profit efficiency including the technical, allocative, and price profit efficiencies. Few studies discuss profit improvement by optimizing the structural arrangement of the network system, which is about adjusting the combinations of upstream and downstream entities in the system. When achieving traditional efficiency, the system's profit can no longer be increased only by reducing inputs, increasing outputs, and adjusting prices. In this situation, structural rearrangement may provide a silver lining to profit improvement. In this study, we take the two-level supply chains as an example and address the research question of how to improve profit via structural rearrangement of the system containing several two-stage subsystems from the efficiency perspective. To answer this question, we view two-stage subsystems in each system as players and propose a data envelopment analysis permutation game method. Through this method, we find the optimal structural rearrangement plan, which is a new way to further improve the profit in addition to improving traditional profit efficiency. We propose a new efficiency measurement, the structural profit efficiency, and find overall profit efficiency is the product of structural profit efficiency and traditional profit efficiency. Finally, we conduct an experiment using the data of 27 supply chains to validate our proposed method and provide the optimal structural rearrangement plans for them.

An innovative process design and multi-criteria study/optimization of a biomass digestion-supercritical carbon dioxide scenario toward boosting a geothermal-driven cogeneration system for power and heat

In the pursuit of enhancing both sustainability and energy density in low-temperature, renewable energy-based cycles, the integration of high-temperature renewable streams is considered a key objective in multigenerational scenarios that focus on renewable energy. This integration is recognized for its ability to reduce irreversibility and facilitate the development of eco-friendly designs. Consequently, the development, analysis, and optimization of an innovative multigenerational system, which utilizes a combination of biomass feedstock and geothermal energy resources, are the aims of this study. In this system, the performance of a geothermal-driven subsystem is significantly enhanced by a biomass-fueled subsystem, contributing to a more efficient overall system. This enhancement involves the integration of biomass digestion with a supercritical CO2 process. The energetic flue gas generated in this process is then utilized to enhance the enthalpy level of geothermal water through a dual-flash process. This process includes an advanced Kalina cycle, enabling combined cooling, heating, and power generation. The feasibility of this structure is examined through a comprehensive analysis that encompasses thermodynamic and economic considerations. The performance optimization is targeted using the Multi-Objective Grey Wolf Optimization technique, and within this framework, two multi-criteria optimization scenarios are defined based on power and heat output, exergy efficiency, and the system's profitability. Furthermore, a detailed sensitivity analysis is conducted, where the impact of variations in five key decision parameters is evaluated. It is indicated by the results that 500.8 kW of power, 900.2 kW of heating, and 4.931 kW of cooling can be provided by the system, which also achieves an exergetic efficiency of 23.08 % and a payback period of 6.87 years.

Techno-Economic Analysis of Residential Grid-Connected Rooftop Solar PV Systems in Indonesia Under MEMR 26/2021 Regulation

Grid-connected commercial rooftop solar PV systems have been widely used worldwide to provide affordable, clean energy and long-term energy security solutions. This is especially true in cities where space is limited and rooftops are not being used. According to the Ministry of Energy and Mineral Resources (MEMR) No 26/2021 regulation in Indonesia, the rooftop PV system is allowed to be integrated with electricity grid with an export-import metering. The owner of the rooftop PV system will not only reduce their electricity bill, but also offset the energy over a period of 10 years. This paper provides a design and sizing analysis of a small scale rooftop solar PV system for residential. This study uses the PVsyst and SolarGIS tools to estimate the amount of energy produced by a 3 kWp solar system. It also provides a financial evaluation of the system's profitability, with particular attention to commercial buildings that are covered under MEMR regulation. This detailed analysis can be used by asset owners to decide the best way forward in terms of sustainable energy production and cost savings, as well as addressing the energy security problem.

Net-zero aviation: Transition barriers and radical climate policy design implications

While air transport decarbonization is theoretically feasible, less attention has been paid to the complexity incurred in various ‘transition barriers’ that act as roadblocks to net-zero goals. A total of 40 barriers related to mitigation, management, technology and fuel transition, finance, and governance are identified. As these make decarbonization uncertain, the paper analyzes air transport system's growth, revenue, and profitability. Over the period 1978–2022, global aviation has generated marginal profits of US$20200.94 per passenger, or US$202082 billion in total. Low profitability makes it unlikely that the sector can finance the fuel transition cost, at US$0.5–2.1 trillion (Dray et al. 2022). Four radical policy scenarios for air transport futures are developed. All are characterized by “limitations”, such as CO2 taxes, a carbon budget, alternative fuel obligations, or available capacity. Scenario runs suggest that all policy scenarios will more reliably lead to net-zero than the continued volume growth model pursued by airlines.

Energy, economic and environmental feasibility of energy recovery from wastewater treatment plants in mountainous areas: A case study of gharyan city – LIBYA

Wastewater treatment facilities at high places can give chances for renewable and sustainable energy generation by putting hydroelectric turbines at the input and drain channels of wastewater treatment plants, and they can also use the sludge generated during the treatment process to make biogas, which can be used to generate power. Purified water is subsequently used to irrigate decorative plants along highways, in gardens, and in woods. The fermentation wastes are utilized as organic fertilizer to improve agricultural soil quality. At the Gharyan sewage station, a hybrid system consisting of a hydroelectric station and an electric generator powered by biogas is proposed in this research. This is because the city is distinguished by its high location, which is approximately 713 m above sea level. The results showed that the proposed system would provide an electric power of 490 kW, which is sufficient to cover 87.5% of the electrical energy consumption of the station. The amount of treated water is approximately 13,000 m3/day, and the amount of organic fertilizer is about 17 tons/day. The investment value is anticipated to be around $1,478,000, while the cost of producing a unit of electric energy is expected to be 2.83 ¢/kWh. This system's yearly net profit is predicted to be $307,765. The capital's recovery period is anticipated to be 3.44 years. The planned hybrid system will limit the discharge of an estimated 1,886 tons of CO2 gas each year.

Is switching to solar energy a feasible investment? A techno-economic analysis of domestic consumers in Spain

Grid-connected photovoltaic (PV) facilities are more attractive than ever due to the electricity price surges and the reduction of solar energy generation costs. This paper develops a solving procedure including a simulation model to analyze the techno-economic performance of PV-battery facilities, taking into account the latest Spanish regulatory framework. The procedure finds the best facilities for multiple objectives, maximum profitability and maximum self-sufficiency, in different locations, load profiles and economic scenarios. The results indicate that PV modules are profitable without subsidies, with installations between 1 and 6 kWp. Meanwhile, batteries are only convenient when seeking maximum independence from the grid, with capacities up to 9 kWh. The findings suggest that the economic feasibility of facilities is influenced by the location and compensation rate surplus electricity, while the facility is mainly determined by the load profile. A sensitivity analysis shows that a variation in grid tariffs and technology prices has a limited impact on the facility's size but modifies the system's profitability. Finally, an analysis of the latest unprecedented grid price surges indicates that self-consumption facilities help become a more resilient society against unexpected events. Therefore, policymakers should keep promoting the adoption of these technologies and keep the current advantageous regulations.

Two‐stage stochastic one‐to‐many driver matching for ridesharing

AbstractWe introduce a modeling framework for stochastic rider‐driver matching in many‐to‐one ridesharing systems, in which drivers have to be selected before the exact rider demand is known. The modeling framework allows for the use of driver booking fees and penalties for unmatched drivers, therefore supporting different system operating modes. We model this problem as a two‐stage stochastic set packing problem. To tackle the intractability of the stochastic problem, we introduce three model approximations and evaluate them on a large set of benchmark instances for three different system operating modes. Our computational experiments show the superiority of some model approximations over others and provide valuable insights on the impact of penalties and booking fees on the system's profitability and user satisfaction.

Comparison of mono and bifacial modules for building integration and electric vehicle charging: A case study in Sweden

Future energy systems have a major difficulty in ensuring a reliable supply of electricity without affecting the environment, and numerous innovative renewables-based solutions are being introduced to meet this issue. This paper proposes a building photovoltaic (PV) system design for residential and electric vehicle (EV) charging demand and evaluates the techno-economic and environmental performance of the system in Orebro, Sweden, as it aims to become net zero carbon economy by 2045. Literature review shows that, although many studies exist, most of them did not fully consider the techno-economic and environmental aspects of PV systems for residential and EV charging loads in the chosen location. Two different PV technologies monofacial and bifacial monocrystalline panel in three different roof slopes 15°,30° and 45° has been analyzed to find the optimized system that can meet a typical house's annual energy demand. Economic indicators such as cumulative cash flow, levelized cost of electricity (LCOE), payback period and cost of EV charging have been evaluated for the PV system without discount and with discount which affects the system's profitability. PVSyst software was used to simulate the system for energy generation. Results have shown that the bifacial PV system performed better in energy generation, which is approximately 10% higher than the monofacial panel. However, in terms of economics, Case 6, a bifacial PV system with a roof angle of 45°, shows the lowest payback period of 7.3 years. In contrast, monofacial PV system with roof slope of 30° showed LCOE of 0.8988 Swedish Krona per kilowatt hour (SEK/kWh), EV charging cost of 0.1471 Swedish Krona per kilometer (SEK/km). Environmental parameters such as greenhouse gases (GHG) reduction have been analyzed. Results showed that GHG savings due to EV was higher than PV plant as Sweden's grid emission factor is very low due to less dependency on fossil fuels. The significance of this study will enable us to understand the performance of PV systems in Swedish aspect and methods can be extended to other countries for meeting location-specific energy demand.