MTN to present at 2016 AFPM Q&A and Technology Forum, Baltimore Marriott Waterfront, Baltimore, MD, September 26-28, 2016
AFPM 2016, PD-16-7, "A Novel Approach to Intermediate Stream Pricing for Unit RTO Applications", S.S. Treiber, R.S. McLeod, D.B. Black, Manufacturing Technology Network, Inc.
A new method of computing the value of intermediate streams based on product market prices has been developed which is independent of LP intermediate stream shadow prices and which aligns the process real-time optimizers’ pricing with the production goals of scheduling and planning. In practice the calculated intermediate prices will change in response to changes in quality, scheduling changes that modify intermediate stream make to the product pools, and changes in market price of products. This method can be applied to real-time optimization by both linear multivariable constraint controllers and non-linear real-time optimizers based on first principles.
The new method produces solutions that are automatically aligned with the planning and scheduling goals eliminating th eneed for operator intervention to acheive desired constraint pushing goals.