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7/25/2019 Modelling Stakeholder Objectives
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Modelling Stakeholder Objectives
in the Design of IndustrialSymbiotic Networks: A systems
approach
Kathleen B. Aviso, Ph.D.
Paterno and Natividad Professorial Chair in EngineeringChemical Engineering Department, De La Salle University Manila
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
About DLSUDe La Salle University is a private, non-profit university
established by the Brothers of the Christian Schools (FSC)
in Manila, Philippines in 1911
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Key Statistics of DLSU
1000 academic staff (50% full time)
20,000 undergraduate students
4,000 graduate students (masters + Ph.D.)
3,000 degrees granted per year (10% postgraduate) 6 ha. (Manila campus) + 50 ha. (STC campus)
1200+ Scopus-indexed publications (h-index = 40)
2014 QS World Ranking 601-650
2014 QS Asian University Ranking 151-160
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
DLSU Researchers in Related Fields
Name Tools Applications
Prof. R. Tan Mathematical Programming,
P-graph, Decision Analysis,
Fuzzy optimization
Energy supply chains, industrial
complexes, Industrial symbiosis, life
cycle systems
Prof. A. Chiu Systems analysis Industrial symbiosis, Circular
economy
Dr. KB Aviso* Fuzzy, multi-objective, bi-
level optimization
Industrial symbiosis, supply chains
Dr. MAB Promentilla* Multi-criterion decision
analysis
Low-carbon energy
Prof. LF Razon LCA Biomass production with focus on N-
footprint
Dr. C Sy Robust optimization Energy planning
Dr. AT Ubando LCA, fuzzy optimization Algae cultivation, polygeneration
systems
Dr. KDS Yu* Input-output models, risk
analysis
Industrial networks and supply chains
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Network in
Co-authorship in
Industrial
SymbiosisResearch(Yu et al., 2013)
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Network in
Co-authorship in
Industrial
SymbiosisResearch(Yu et al., 2013)
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
if the neoclassical economic model of human behavior is
to be believed then every individual actoris also
essentially a self-interested maximizer of individual profit
- Jackson and Clift, 1998
7
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8
Introduction Population and the onset of
climate change will impactthe availability of
freshwater resources
Freshwater availability has
been identified as a key
indicator for humansurvival (Rockstrom et al., 2009)
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Industrial Ecology
Popularised in 1989 by Frosch and Gallopoulos
Utilizes an analogy between the industrial system and naturalecosystems (metabolism and symbiosis) to achievesustainability
Waste materials from one industry become inputs of anotherindustry (Industrial symbiosis)
IE is a systems approach towards sustainability
Reference: Frosch and Gallopoulos, 1989, Scientific American, 261, 94 - 102
Industrial
SystemComponent
Resources
Products
By-ProductsWaste
Industrial
System
ComponentResources
Products
By-ProductsWaste
IndustrialSystem
ComponentResources
Products
By-Products
Waste
Industrial Ecology
IndustrialSystem
Component
Industrial
System
Component
Material and
Energy
Exchange
IndustrialSystem
Component
Industrial System Industrial Eco-system
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Industrial Symbiosis
Kalundborg Eco-industrial Park, Denmark10
Reference: Ecodecision, Spring 1996 (20)
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Other Examples of
Eco-industrial ParksIndustrial Park Location
Kwinana Australia
Chamusca Portugal
Forth Valley and Grangemouth UK
Landskrona Sweden
Kawasaki Japan
Tianjin China
Ulsan Korea
11
Adapted from Zhu and Ruth (2014)
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Industrial Symbiosis (IS)
The symbiotic relationships in industrial systems areencouraged by geographical proximity as in eco-industrial
parks (EIP)(Ehrenfeld and Chertow, 2002)
The exchange of common utilities such as energy and waterare precursors to full-blown IS (Chertow, 2007)
Optimization models prescribe designs to maximize benefits inIS (e.g. Lovelady and El-Halwagi, Chew and Foo, 2009)
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
11 134 417
879
938
530
1817
934
7
1287
Process Systems Engineering (PSE)
in the Design of water exchange
networks
13
1
3
2
4
FW
WW
Optimized Network
Plant A
Plant B
Plant E
SR1
SK1
Plant C
SK3
SR2
SK2
Plant D
SR3
SR4
SK4
SR5
200 t/h 1,221.38 t/h
422.53 t/h
78.62 t/h
1,000 t/h
3,500 t/h
2,501.15 t/h
512.07 t/h
1,987.93 t/h
Centralized
Regeneration
UnitCR= 500 ppm
FW
1,000 t/h
498.85 t/h
WW12.07 t/h
78.62 t/h
Initial PSE models
identified designs for a
single decision-maker
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Issues in Industrial Symbiosis
The main stumbling block for forging networks is thatparticipating plants have conflicting objectives (Tan, 2008)
IS lends itself to uncertainties in the reliability of the exchange
networks (Liao et al., 2007) Initial models for industrial symbiosis have failed to integrate
stakeholder interests
Initial models have assumed that the optimal design for the
whole system is the same for the individual participants
14
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modeling participant
goals A fuzzy optimization model is
developed to integrate
participant goals in optimizing
the design
It results in a design which
satisfices the individual
objectives of participating
plants
15
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Developing the Optimization
Model
16
The objective is to
maximize the satisfaction of
the least satisfied
participant
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modeling Participant
Goals
Plant Original Cost % Savings
System
Optimum
Fuzzy
Optimum
M 90.75 5.64 7.72
O 7,812.75 0.60 5.43
P 3,575.00 35.22 23.83
Over-all 11,478.50 11.42 11.18
17
11 134 417
879
938
530
1817
934
7
1287
Benefits of IS can be more equitably distributed using fuzzy optimization
(Keckler and Allen, 1f999)
ikik
N
'k
N
j
'ikjk SWrK 'JK
k,i
'jk'jk
N
k
N
i
'ikjk DFrK IK
'k,j
'jkm'jk,inU
'jkm,F
N
k
N
i
'ikjkikm,out DQFQrQK IK
m,'k,j
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modeling Participant
Goals
Plant Original Cost % Savings
System
Optimum
Fuzzy
Optimum
M 90.75 5.64 7.72
O 7,812.75 0.60 5.43
P 3,575.00 35.22 23.83
Over-all 11,478.50 11.42 11.18
18
11 134 417
879
938
530
1817
934
7
1287
Benefits of IS can be more equitably distributed using fuzzy optimization
(Keckler and Allen, 1f999)
ikik
N
'k
N
j
'ikjk SWrK 'JK
k,i
'jk'jk
N
k
N
i
'ikjk DFrK IK
'k,j
'jkm'jk,inU
'jkm,F
N
k
N
i
'ikjkikm,out DQFQrQK IK
m,'k,j
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modelling the supply chains
How do you meet the demandfor products when you need to
consider environmental
constraints?
Environmental constraints differ
between economic or national
regions
19
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modelling the Supply Chain
More efficient productiontechnologies may exist in other
regions
Find a balance between
consumption based and
production based targets
An optimal exchange network
can reduce regional
environmental stress
20
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modeling the role of
government Implementation of IS
networks may be of interest
topolicy makers
The government can
influence participating
companies through
incentives or disincentives
21
*This article received an Editorial
commendation for being a highly
cited article in Trans. IChemE
Part B (2012)
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
A multi-level Stackelberg
approach
22
FOLLOWERS
LEADER: EIP Authority
Minimize Freshwater Consumption
Subject to:Objectives of individual plantsFreshwater unit costWastewater treatment unit costSubsidy rate fraction
Plant 1Minimize Cost1Subject to:Water balancesWater qualityconstraintsTopologicalconstraints
Plant nMinimize CostnSubject to:Water balancesWater qualityconstraintsTopologicalconstraints
Plant 2Minimize Cost2Subject to:Water balancesWater qualityconstraintsTopologicalconstraints
Solve objectivefunction of leader
Solve objectivefunction offollowers
Do thesolutionscoincide?
Set-up membershipfunctions for leader and
followers
No
Maximize levels of satisfactionof leader and followers
simultaneously
Is thesolution
feasible?
Leader adjuststolerances and
controlvariables
No
Optimal SolutionYes
SatisficingYes
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modeling the role of
government
0
0.
4
0.
8
1.
2
1.
6
2
0
0.3
0.6
0.
9
1.
2
1.5
1.
8
160
180
200
220
240
260
flowrate of freshwater
(t/day)
unit cost for wastewater
$/tunit cost for freshwater
$/t
240-260
220-240
200-220
180-200
160-180
Identifyingpolicies
which will influence
participant objectives
is key
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
When information is not
complete The participation of several inde-
pendently operating plants results
in incomplete information
exchange due to confidentiality
issues
Designing the exchange network
should be able to work in the
absence of information
24
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
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Modeling incomplete information
Process characteristics may
be modeled depending on
the amount of informationthat is divulged
25
Fixed Flow
Fixed Concentration
Fixed Flow
Fixed Concentration
(b) BLACK BOX
Variable Flow
ariable Concentration
Variable Flow
Variable Concentration
(c) GRAY BOX
(a) WHITE BOX
Variable Flow
Variable Concentration
Variable Flow
Variable Concentration
Fixed Flow
Fixed Concentration
Fixed Flow
Fixed Concentration
(b) BLACK BOX
Variable Flow
ariable Concentration
Variable Flow
Variable Concentration
(c) GRAY BOX
(a) WHITE BOX
Variable Flow
Variable Concentration
Variable Flow
Variable Concentration
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
When the future is
uncertain IS lends itself to uncertain
futures as the fate and plans
of independent plants are
not revealed completely
Networks should be robust
in consideration of
uncertainties
26
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
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Robust Optimization Model
Objective function
27
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Scenario 1
Scenario 2
Scenario 3
A feasible structure in onescenario may be infeasible in
another
Freshwater reduction:
85% in Scenario 1
76% in Scenario 2
Infeasible in Scenario 3
Optimal Networks
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Modeling uncertain futures in
Eco-industrial networks The robust network is that which remains feasible
regardless of which future takes place
Robust design may beused in planning the design
of eco-industrial networks
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International Conference on Eco-Industrial Development
October 29 - 30, 2014
Shanghai Jiao Tong University, Shanghai China
Conclusions
In the design of eco-industrial networks it is important to
consider issues resulting from the multi-stakeholdernature of
the problem
The independent goals of the participants can be integrated
through fuzzy optimization
Modeling the role of government is done through a multi-levelStackelberg game approach
It is possible to identify the design of a network even in the
presence of incomplete information
A robust design is that which remains feasible regardless of
which scenario takes place
30
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Future and on-going work
Future work will explore the development ofp-graph models for industrial network
synthesis and optimization
Game theoretic concepts such as the Shapley
value can be utilized to identify the
appropriate distribution of ISbenefits
Integrating social indicators into the model
Integration of the concept of riskand
resilience in identifying optimal networks
Use of decision analysis methods such as
AHP
Developing dynamic models to model theevolution of EIPs
31
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October 29 - 30, 2014
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Further Reading
Aviso, K.B. (2013) Design of robust water exchange networks for eco-
industrial symbiosis.Process Safety and Environmental Protection (in
press, dx.doi.org/10.1016/j.psep.2012.12.001).
Aviso, K. B., Tan, R. R., Culaba, A. B, Foo, D. C. Y. and Hallale, N. (2011)
Fuzzy optimization of topologically constrained eco-industrial resource
conservation networks with incomplete information.Engineering
Optimization, 43: 257 279. Aviso, K. B., Tan, R. R. and Culaba, A. B. (2010) Designing Eco-Industrial
Water Exchange Networks Using Fuzzy Mathematical Programming. Clean
Technologies and Environmental Policy, 12, 353 362.
Aviso, K. B., Tan, R. R., Culaba, A. B. and Cruz, J. B. (2010) Bi-Level
Fuzzy Optimization Approach for Water Exchange in Eco-Industrial Parks.
Process Safety and Environmental Protection 88: 31 40.
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Thank you
30