PI: Ignacio Grossman
University: Carnegie Mellon University

Our main vision has been to develop advanced computational models and solution methods for enterprise-wide optimization (EWO) for process industries. A major challenge that is involved in EWO is the integrated and coordinated decision-making across the various functions in a company (purchasing, manufacturing, distribution, sales), across various geographically distributed organizations, and across various levels of time scales (strategic, tactical, and operational). A major focus of the proposed PITA project, which is a collaboration with EQT, is the optimization of infrastructure investment, operations and water management of shale gas supply chains accounting for uncertainty in the decline curves, and gas demand and prices.

The funding requested for 2018 PITA, $25,000, is for the period January 1, 2018-December, 31, 2018. Funding is requested for the PhD. student Can Li, who will be developing stochastic programming methods to anticipate the effect of uncertainties in decline curves, and gas demand and prices. Can will work closely with Markus Drouven from EQT to gather data to develop a case study that will be used to test the proposed optimization models in the Marcellus Shale play.

The special interest group, EWO, has been created, and has 12 companies as members: ABB, Air Liquide, Aurubis, Braskem, Dow Chemical, EQT, ExxonMobil, P&G, Petrobras, Praxair, SK-Innovation, and Total. Since these companies are members of the Center for Advanced Process Decision-making (CAPD, in addition to the basic annual membership of $20,000, they pay a fee of $13,500 per year for the EWO project. With Dow, the team has set up special projects that provide full support for graduate students. The team conducts semi-annual EWO meetings, in which the progress of the case studies are reported, and where industrial representatives give presentations. The team is currently undertaking 13 case studies related to shale gas, petroleum processing, and electric power.