Power demand risk models on milling machines

Hyun Woo Jeon, Seok Gi Lee, Amin Kargarian, Yuncheol Kang

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The measurement of power demand risks in manufacturing power systems will benefit manufacturers and the wider society. If the risks can be characterized using manufacturing parameters, manufacturers can better control risks originating in those parameters, select less power-risky production plans, and reduce utility costs and resource consumption. The measurement of risk can also help manufacturers and power suppliers to protect their power systems from unexpected disturbances. Existing measures of risk, however, do not consider time duration, and thus cannot accurately quantify the risks in manufacturing power systems; the risks of a period of high power demand must be evaluated with the duration of the surge. Therefore, new methods of measuring power demand risks are proposed, adapting measures drawn from the field of finance. With a focus on milling operations, processing power is shown to be a function of processing amount (A) and processing time (T), and a power demand distribution is directly derived as a joint distribution of A and T. A bivariate random variable model with copulas is applied to examine the correlation in the joint distribution. Then, based on evaluation of a probability distribution of power demand from A and T, new risk measures are introduced. Illustrative examples are provided to show how the proposed measures can quantify the power demand risks from milling machines, based on manufacturing parameters. Certain manufacturing parameters are found to affect overall power demand risks, including i) raw material type, ii) variability in processing time, and iii) correlation between A and T. In the examples, these three factors increase power demand risks by up to 108%, 67%, and 1% respectively.

Original languageEnglish (US)
Pages (from-to)1215-1228
Number of pages14
JournalJournal of Cleaner Production
Volume165
DOIs
StatePublished - Nov 1 2017

Fingerprint

Milling machines
manufacturing
Processing
demand
Milling
Risk model
Finance
Random variables
finance
Probability distributions
Raw materials
Manufacturing

Keywords

  • Conditional value-at-risk
  • Milling power
  • Risk measurement
  • Value-at-Risk

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment
  • Environmental Science(all)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

Cite this

Power demand risk models on milling machines. / Jeon, Hyun Woo; Lee, Seok Gi; Kargarian, Amin; Kang, Yuncheol.

In: Journal of Cleaner Production, Vol. 165, 01.11.2017, p. 1215-1228.

Research output: Contribution to journalArticle

Jeon, Hyun Woo ; Lee, Seok Gi ; Kargarian, Amin ; Kang, Yuncheol. / Power demand risk models on milling machines. In: Journal of Cleaner Production. 2017 ; Vol. 165. pp. 1215-1228.
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