Energy Price and Workload Related Dispatching Rule: Balancing Energy and Production Logistics Costs

TL;DR

This paper proposes a new dispatching rule that balances energy and production logistics costs by adjusting machine operations based on energy prices and workload, supported by a stochastic simulation model.

Contribution

It introduces a novel dispatching rule integrating energy prices and workload into Material Requirement Planning for improved manufacturing cost efficiency.

Findings

Significant reduction in overall costs through the dispatching rule.

Trade-offs identified between energy and logistics cost minimization.

Enhanced decision-making on shop floor with Pareto front analysis.

Abstract

In response to the escalating need for sustainable manufacturing practices amid fluctuating energy prices, this study introduces a novel dispatching rule that integrates energy price and workload considerations with Material Requirement Planning (MRP) to optimize production logistics and energy costs. The dispatching rule effectively adjusts machine operational states, i.e. turn the machine on or off, based on current energy prices and workload. By developing a stochastic multi-item multi-stage job shop simulation model, this research evaluates the performance of the dispatching rule through a comprehensive full-factorial simulation. Findings indicate a significant enhancement in shop floor decision-making through reduced overall costs. Moreover, the analysis of the Pareto front reveals trade-offs between minimizing energy and production logistics costs, aiding decision-makers in selecting optimal configurations.