Locating and Allocating Warehouse Facilities and Prosumer Microgrid in Transactive Energy Paradigm

Though various studies are made to lower the carbon footprints of industrial facilities, few studies have been made to integrating prosumer microgrid in multi-layer manufacturing networks for jointly reducing production and energy cost. This paper proposes a facility-microgrid, location-allocation model in which warehousing, transportation logistics, and onsite generation are coordinated in an integrated optimization model. The model strategically locates the industrial facilities as well as siting and sizing microgrids for renewable generation. The model further makes operational planning for inventory level, electric truck routing, power scheduling, and electricity trading subject to uncertain product demand and generation. The model is implemented in a two-layer supply chain network covering a large area of Arizona and Nevada in the US. The results show locations with larger solar and wind potentials opt to establish industrial facilities despite of longer transportation distance or higher shipping cost for downstream customers.