PITA FY2014 Projects

Computational Methods for Enterprise-wide Optimization

PI:Ignacio E. Grossmann, Chemical Engineering

University:Carnegie Mellon University

Co-PI(s):Lorenz T. Biegler, Chemical Engineering

Industry Affiliate(s):ABB
Air Products
Braskem America
Dow Chemical

Summary:We have established a program on Enterprise-wide Optimization (EWO) at the Center for Advanced Process Decision-making (CAPD). EWO involves optimizing the supply, manufacturing and distribution operations in process industries to reduce costs and inventories. The program currently involves eleven companies: ABB, Air Liquide, Air Products, Braskem, Dow, ExxonMobil, Petrobras, P&G, Praxair, Sasol, Unilever. Thisproposal seeks partial support for EWO projects with four Pennsylvania based companies, Air Products, Braskem, Dow, EQT, and one company that has operations in the state, ABB) With Air Products we have undertaken a new project that deals with the Stochastic Modeling of Industrial Gas Markets in which the impact of decisions by the competition are accounted for using optimization models based on game theory. With Braskem the research involves developing a production planning model for optimizing the manufacture of different grades of propylene using accurate models for the distillation column and chemical reactor. With Dow we are involved in four different projects: Generation of Scenario Trees with Historical Production Data, Design of Supply Chains with Risk of Disruptions; Dynamic Optimization of Multiproduct Batch Plants, and Financial Risk with Discrete Event Simulation. The first gives rise to moment matching problems to predict values and probabilities of the scenario trees. The second one gives rise to a stochastic programming model that considers safety stocks and rerouting to satisfy customer demands. The third involves a mixed-integer dynamic optimization model to optimize the production recipe and its sequencing in the batch process. The fourth involves the application of derivative free optimization methods to discrete event simulators. We have initiated work in the development of shale gas supply chains in collaboration with EQT. Finally, with ABB the goal is to develop a model to optimize the design and operation of the supply chain for manufacture and distribution of electric motors.