(604a) Multi-Period Game-Theoretic Customer Allocation in Oligopolies Under Contractual Agreements
- Conference: AIChE Annual Meeting
- Year: 2020
- Proceeding: 2020 Virtual AIChE Annual Meeting
- Group: Computing and Systems Technology Division
- Time: Wednesday, November 18, 2020 - 8:00am-8:15am
In the present work, we examine the problem of fair customer allocation in oligopolies under different contractual agreements within a multi-period setting. We consider an ensemble of contract types that vary in terms of sales prices and duration. Key decisions include: (i) optimal production, inventory & energy consumption levels of the firmsâ plants that comprise the oligopoly, (ii) allocation of customers to firms & (iii) sequencing of contracts with different duration and pricing policies between the firms and the customers. For the sequencing of contracts, we further explore tight MILP formulations so as to enhance computational performance. The role of fairness is investigated via the Nash bargaining approach and the overall problem is formulated as a convex MINLP. For its efficient solution we employ two different solution techniques, i.e. (i) an outer approximation branch & refine global optimisation method  and (ii) a piecewise linearisation strategy. The model capabilities and the role of fairness are evaluated through case studies from an industrial liquids market.
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