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2019 | Book

Input-Output Models for Sustainable Industrial Systems

Implementation Using LINGO

Authors: Prof. Dr. Raymond R. Tan, Dr. Kathleen B. Aviso, Prof. Michael Angelo B. Promentilla, Dr. Krista Danielle S. Yu, Prof. Joost R. Santos

Publisher: Springer Singapore

Book Series : Lecture Notes in Management and Industrial Engineering

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About this book

This book addresses the specialized topic of input–output models for sustainable industrial systems. While these models are well-established tools for economic analysis, their underlying mathematical structure is also applicable to the analysis and optimization of a wide range of systems that are characterized by linear interdependencies among their components. This means that input–output models can be used for diverse networks, such as processes within industrial plants, industrial plants in a supply chain, or departmental units within an organization. The models can also be readily extended to interactions between man-made systems and the environment, e.g. flows of natural resources and/or pollutants. Furthermore, model variants with excess degrees of freedom can be formulated to allow optimization and decision-making to be integrated within the framework. This book examines how input–output models can be applied to sustainable industrial systems. Each major variant is discussed separately in a dedicated chapter, and representative case studies and supporting LINGO code are also included.

Table of Contents

Frontmatter
Chapter 1. Introduction to Input–Output Models
Abstract
This chapter provides a general introduction to input–output analysis and input–output models. A brief description of the historical development of the framework, leading to its widespread use, is given. A qualitative discussion of the general framework is presented, followed by a discussion of the key assumptions that underlie input–output models as well as the resultant limitations. The chapter also provides an overview of the rest of the book.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 2. Mathematical Foundations of Input–Output Models
Abstract
A detailed discussion of the mathematical foundations of input–output analysis is given in this chapter. The basic data format used in economic input–output models is discussed first, leading to the basic formulation and its solution using the matrix inversion approach. The use of the basic input–output model for key sector analysis is illustrated with the aid of an example. Applications of the input–output equations are depicted using spreadsheets, which provide an ideal foundation to understand the LINGO codes in subsequent chapters. Then, extensions involving mathematical programming, regional input–output models, and physical input–output models are considered; these variants are also illustrated with examples.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 3. Programming in LINGO
Abstract
A brief introduction to the commercial optimization software LINGO is given. General features of the software are discussed, including user interface, file formats, and syntax. A generic example of an optimization model coded in LINGO is first given, followed by a specific case study that implements the basic input–output model. The use of set-based coding for large models is also introduced.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 4. Input–Output Models of Industrial Complexes
Abstract
Industrial complexes are comprised of clusters of industrial plants linked via a supply chain within close geographic proximity. Such complexes may emerge spontaneously or through deliberate planning as industrial parks. These systems when properly planned can optimize resource use and reduce waste and are known as eco-industrial parks. This chapter discusses the use of input–output models for the analysis and optimization of such industrial complexes under various conditions. An illustrative example is discussed here and is supported by LINGO model formulations.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 5. Input–Output Models of Infrastructure Systems
Abstract
Infrastructure systems consisting of mutually interdependent components are common in modern urban settings. Such systems are constantly at risk of cascading failure from various triggering events or perturbations. Consequently, such perturbations cause indirect ripple effects to other interdependent systems, which can propagate through the network as inoperability. Inoperability input–output models are extensions of input–output models that can represent the flow of inoperability through such critical infrastructure systems. Such models are discussed in this chapter, supported by illustrative examples and corresponding LINGO code.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 6. Input–Output Optimization Models for Supply Chains
Abstract
Input–output models have the ability to reflect supply chain linkages in industrial networks. The vulnerability of such networks to external perturbations can also be shown within input–output framework. In this chapter, an extension of the input–output model for determining how to optimally allocate levels of production during a transient crisis is discussed. A simple didactic example is solved first, followed by a more complex case study involving climate-induced disruption. Both examples are accompanied by LINGO codes.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 7. Life Cycle Assessment Models
Abstract
Life cycle assessment (LCA), a comprehensive framework for analyzing the environmental impacts of products and systems on a cradle-to-grave paradigm, is a methodology closely related to environmentally extended input–output analysis. In this chapter, a discussion of the mathematical principles of LCA is given. Two illustrative case studies are also solved, and the corresponding LINGO codes are provided.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 8. Input–Output Models of Industrial Plants
Abstract
Physical input–output models can be used to aid in the synthesis (design) or operations of industrial plant. In this chapter, the use of such models is illustrated for the case of polygeneration plants. The first example illustrates a zero degree of freedom synthesis problem. A second example illustrates how an input–output model can be used to identify process bottlenecks in existing plants. A third example discusses a mixed-integer linear programming (MILP) formulation of an input–output model to optimize state operations when the system is subjected to a disruptive event. LINGO code is provided for all examples.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 9. Input–Output Models of Organizational Structures
Abstract
The interactions among groups of employees or staff in organizational units involve transactions that are analogous to those reflected in large-scale input–output models. The main difference is that, in an organization, the interactions of personnel with internal or external customers are often measured in terms of time (e.g., person-hours), in contrast to the monetary and physical units used in traditional input–output models. This chapter discusses organizational input–output models based on this concept. A case study is solved under different scenarios to illustrate the framework, and the corresponding LINGO model formulations are given.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Chapter 10. Future Research Prospects for Input–Output Models
Abstract
In this chapter, the potential for further research developments in input–output analysis is discussed. Promising methods (e.g., AHP) for calibrating input–output models are presented to complement mainstream statistical approaches for estimating the coefficients of the model. The prospect of combining input–output analysis with other optimization techniques, such as P-graph and pinch analysis, is also discussed. Finally, this chapter provides reflections on the possible application of extended input–output models to contemporary issues such as climate change or emerging sustainability concepts such as the circular economy.
Raymond R. Tan, Kathleen B. Aviso, Michael Angelo B. Promentilla, Krista Danielle S. Yu, Joost R. Santos
Backmatter
Metadata
Title
Input-Output Models for Sustainable Industrial Systems
Authors
Prof. Dr. Raymond R. Tan
Dr. Kathleen B. Aviso
Prof. Michael Angelo B. Promentilla
Dr. Krista Danielle S. Yu
Prof. Joost R. Santos
Copyright Year
2019
Publisher
Springer Singapore
Electronic ISBN
978-981-13-1873-3
Print ISBN
978-981-13-1872-6
DOI
https://doi.org/10.1007/978-981-13-1873-3