An efficient hierarchical market-like coordination algorithm for coupled production systems based on quadratic approximation. (4th March 2020)

• Record Type: Journal Article
• Authors: Wenzel, S.; Riedl, F.; Engell, S.
• Is Part Of: Computers & chemical engineering. Volume 134(2020)
• Publication Date: 2020-03-04
• Subjects: Distributed optimization -- Shared resource allocation -- Lagrangian relaxation -- Market-like coordination -- Quadratic approximation coordination; Chemical engineering -- Data processing -- Periodicals; 660.0285
• DOI: 10.1016/j.compchemeng.2019.106704
• Languages: English
• ISSNs: 0098-1354

Abstract

Highlights: We propose an efficient hierarchical market-like coordination algorithm based on quadratic approximation. The algorithm ensures confidentiality between the subsystems. Fewer iterations compared to subgradient based update steps. Graphical abstract: Abstract: In an increasingly digitized, integrated, and connected production environment, the coordination of complex coupled systems of systems is essential to ensure a resource efficient and optimal operation. Large production sites or industrial clusters are such systems, where the coordination is challenging. One of the challenges is the physical coupling of the individual production plants via networks of shared resources such as steam, intermediates, wastewater or heating gas. If only a restricted amount of business relevant data can be exchanged within the system, distributed market-like coordination methods can be used to establish an auction in a micro market to optimally balance the shared resource networks. The drawback of these methods is their slow rate of convergence. Thus, we propose an efficient hierarchical market-like coordination algorithm that approximates the responses of the subsystems to find the optimal solution within fewer iterations. We demonstrate the efficiency of approach for two numerical case studies.