Abstract

We explore how feedback control can make chemical producers responsive to market forces through the use of dynamic operating policies. Using a toy model of a marginal chemical producer operating in a dynamic market, we examine two different control strategies for dealing with stochastic price fluctuations. The key contribution of this work is the derivation of switching rules under risk-neutral and risk-sensitive control formulations for problems where the dynamics arise from the market. These results provide a basis for exploring more complex control problems that include the effects of market forces.

Original languageEnglish (US)
Pages (from-to)181-186
Number of pages6
JournalComputers and Chemical Engineering
Volume51
DOIs
StatePublished - Apr 5 2013

Keywords

  • Capacity utilization
  • Dynamic programming
  • Economics
  • Process control

ASJC Scopus subject areas

  • Chemical Engineering(all)
  • Computer Science Applications

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