Optimal resource allocation in industrial complexes by distributed optimization and dynamic pricing

Authors:

Wenzel, Simon; Paulen, Radoslav; Stojanovski, Goran; Krämer, Stefan; Beisheim, Benedikt; Engell, Sebastian

Journal:

at – Automatisierungstechnik (AT-AUTOM)

Open source: http://www.degruyter.com/view/j/auto.2016.64.issue-6/auto-2016-0003/auto-2016-0003.xml?format=INT

 ( DOI 10.1515/auto-2016-0003 )

Abstract:

We address the distributed hierarchical optimization of industrial production complexes where the individual plants exchange resources via networks. Due to the site-wide couplings a centralized or a distributed hierarchical optimization is needed to achieve the best over- all performance of the site and to balance the networks of the shared resources. We discuss market-like algorithms that set prices of the shared resources in order to influence the individual optimizers so that the overall operation converges to the site-wide optimum. A novel algorithm for price adjustment based on the quadratic approximation of the responses of the individual optimizers is presented. It shows convergence to the site-wide optimum with significantly less iterations in comparison to the standard subgradient-based method for a set of case studies, including a petrochemical complex.