Maximizing sustainability requires the efficient use of limited resources and minimization of energy waste. The supply chain concept facilitates the active exchange and utilization of energy and resources on a larger scale. By optimizing the use of resources and reducing waste throughout the supply chain, sustainability can be improved. This approach not only benefits the environment, but also promotes economic growth and social responsibility. Through a sustainable supply chain, businesses can reduce costs, increase efficiency, and enhance their reputation as responsible corporate citizens.
Spatio-temporal design and deployment of CO2 based product supply chain networks
To address the increasing effects of climate change, there is a need to accelerate the deployment of CO2 based product supply chains that consider physical site constraints (spatio) as well as the multi-period nature of capacity investment (temporal). These CO2 supply chains involve CO2 sources such as power and cement plants, energy supply sources, CO2 capture processes, and CO2 conversion processes. However, the economic feasibility and sustainability of such combined systems are highly uncertain at the initial time of investment and are dependent on constantly changing energy production dynamics, market uncertainties, and government policies such as CO2 credits and incentivization.
The design and management of CO2 based product supply chains must therefore consider the spatio-temporal requirement while identifying and modeling the major sources of uncertainties. For this purpose, our group aims to develop a comprehensive, novel method to design, deploy and operate supply chains over multiple decades based on the techniques of reinforcement learning and mathematical programming. Reinforcement learning is employed to handle the curse of dimensionality that arises when multi-period decisions with time-varying uncertainties are considered.
Associated members: Jihwan Lee
Superstructure-based evaluation and optimization of hydrogen production, storage and distribution network
Hydrogen is touted as an attractive energy carrier, which can store and transport energy without direct carbon emissions. Moreover, hydrogen can be produced using diverse energy sources such as electricity, natural gas, coal, nuclear, and industrial off-gas. Furthermore, several options exist for the distribution of hydrogen, including pipelines, ammonia shipping, truck, etc. This multi-thronged approach to hydrogen production and distribution results in a highly complex combinatorial problem for identifying the optimal hydrogen supply chain structure.
To identify the optimal hydrogen supply structure addressing both the environmental and economic aspects, in our group, we aim to design a comprehensive superstructure model that includes various hydrogen production, storage and distribution options. The best choice of hydrogen supply chain will be case-specific and therefore will have to be determined on a case-by-case basis reflecting the individual circumstances. Hence, a software tool that enables quick evaluations and optimization of the various operations in the superstructure are being developed. Additionally, we are working on methods and tools for transportation scheduling and supply chain management for the hydrogen economy, while fully addressing various uncertainties regarding the technologies, the market, and the government policies.
Associated members: Juyeong Jung, Sunwoo Kim