Preconditions for applying an energy price-oriented sequencing rule

Abstract

Rising and increasingly volatile energy prices resulting from increased power feeds from renewable sources such as solar and wind energy are confronting manufacturers with new challenges. If these companies procure their power supplies at fluctuating short-term prices from electricity exchanges or through energy purchasing pools, they can influence the resulting energy costs through production control via its actuating variables while energy consumption remains constant. A form of sequencing that decides at short notice which order will be processed next shows particularly high potential. The energy price-oriented sequencing rule that is introduced in this article prioritises orders with a high energy requirement at times when energy prices are low and gives precedence to orders that require less energy at times when energy prices are high, without neglecting the scheduled completion deadline. However, this sequencing rule can only be applied effectively under certain preconditions. These are elaborated in this article by means of a simulation study that will confirm the way the rule functions.