Abstract: This paper deals with a periodic-review substitutable
inventory system for a finite and an infinite number of periods. Here
an upward substitution structure, a substitution of a more costly item
by a less costly one, is assumed, with two products. At the beginning
of each period, a stochastic demand comes for the first item only,
which is quality-wise better and hence costlier. Whenever an arriving
demand finds zero inventory of this product, a fraction of unsatisfied
customers goes for its substitutable second item. An optimal ordering
policy has been derived for each period. The results are illustrated
with numerical examples. A sensitivity analysis has been done to
examine how sensitive the optimal solution and the maximum profit
are to the values of the discount factor, when there is a large number
of periods.
Abstract: Rapid economic development and population growth
in Malaysia had accelerated the generation of solid waste. This issue
gives pressure for effective management of municipal solid waste
(MSW) to take place in Malaysia due to the increased cost of landfill.
This paper discusses optimal planning of waste-to-energy (WTE)
using a combinatorial simulation and optimization model through
mixed integer linear programming (MILP) approach. The proposed
multi-period model is tested in Iskandar Malaysia (IM) as case study
for a period of 12 years (2011 -2025) to illustrate the economic
potential and tradeoffs involved in this study. In this paper, 3
scenarios have been used to demonstrate the applicability of the
model: (1) Incineration scenario (2) Landfill scenario (3) Optimal
scenario. The model revealed that the minimum cost of electricity
generation from 9,995,855 tonnes of MSW is estimated as USD
387million with a total electricity generation of 50MW /yr in the
optimal scenario.