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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 523 records · Page 29
All sourcesNASA NTRSDOE OSTI
DOE OSTI2021

Modular supply chain optimization considering demand uncertainty to manage risk

Supply chain under demand uncertainty has been a challenging problem due to increased competition and market volatility in modern markets. Flexibility in planning decisions makes modular manufacturing a promising way to address this problem. We report the problem of multiperiod process and supply chain network design is considered under demand uncertainty. A mixed integer two-stage stochastic programming problem is formulated with integer variables indicating the process design and continuous variables to represent the material flow in the supply chain. The problem is solved using a rolling horizon approach. Benders decomposition is used to reduce the computational complexity of the optimization problem. To promote risk-averse decisions, a downside risk measure is incorporated in the model. The results demonstrate the several advantages of modular designs in meeting product demands. A pareto-optimal curve for minimizing the objectives of expected cost and downside risk is obtained.

42 ENGINEERING↗
DOE OSTI2025

Environmental and socio-economic Pareto-front trade-off analysis of U.S. PET packaging material in a circular economy

Various recycling technologies are emerging to implement circular economy in plasticssupply chain systems. However, the environmental and socio-economic trade-offs of in circular economy are not well understood at a systems level. Particularly, quantifying these trade-offs as a function of end-of-life (EOL) management decisions, including transition of recycling technologies, systems level metrics such as circularity, recycled content, and the need for fossil-derived plastics are not well understood. Here, the present study addressed these research gaps by applying a systems analysis modeling approach that utilizes material flow analysis, life cycle assessment, socioeconomic data, and system optimization techniques for polyethylene terephthalate (PET) packaging supply chains in the United States. Pareto-front trade-offs between conflicting environmental and socio-economic impacts as well as those between socioeconomic impacts and circularity were explored using the epsilon constraint method. The Pareto-front trade-off analysis revealed the transition of EOL management strategies for PET packaging systems, including changes in selection of recycling technologies, to aid decision making process by quantifying studied system metrics. Transitioning from environmentally optimal to socio-economically optimal systems led to increased employment (by 17%), wages (by 26%), and revenues (by 6%) but also led to increased global warming potential (GWP; by 65%), energy consumption (by 59%), and reliance on fossil PET in the system (by 78%). Finally, the results show that there is not a unique set of recycling technologies to achieve a sustainable circular economy of PET packaging system, instead it depends on the decision maker’s objectives and targeted metrics of the system.

54 - ENVIRONMENTAL SCIENCES/GLOBAL CLIMATE CHANGE ↗
DOE OSTI2025

Integrated Metrics for County-Level Resilience Ranking Using Entropy and TOPSIS

In the face of atypical weather events, power infrastructure failures, and limited resources for resilience investment, energy decision-makers need data-driven metrics to allocate resilience investments and maximize the reduction of power outage impacts. For state-level planning, for instance, ranking the resilience of each county is key to ensuring effective distribution of resources. In such cases, resilience for each spatial unit is multifaceted and is captured by a set of indicators (i.e., metrics) that can be combined into an overall score that reduces the complexity of power outage dynamics to a single decision metric. However, weighting of these indicators is often addressed by simplifying assumptions (i.e., equal weights) or semi-subjective methods that rely on user-defined weights that can introduce biases (e.g., weighted average score). Within the disaster risk reduction and resilience engineering community, a recurring challenge in multicriteria decision-making is the objective weighting of indicators for composite indices. To address this issue, we have leveraged a Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) combined with an entropy-based weighting approach to calculated the integrated scores. This method objectively determines the importance of each metric, better discerns between spatial units (i.e., counties), and offers a more reliable ranking of counties according to their relative resilience attributes. By improving methods for integrating resilience indicators, our approach helps planners and decision-makers prioritize resources more effectively for more efficient resilience investments.

Bhusal, Narayan [Oak Ridge National Laboratory (OR↗
DOE OSTI2024

Buyers Collusion in Incentivized Forwarding Networks: A Multi-Agent Reinforcement Learning Study

We present the issue of monetarily incentivized forwarding in a multi-hop mesh network architecture from an economic perspective. It is anticipated that credit-incentivized forwarding and relaying will be a simple method of exchanging transmission power and spectrum for connectivity. However, gateways and forwarding nodes, like any other free market, may create an oligopolistic market for the users they serve. In this study, a coalition scheme between buyers aims to address price control by gateways or nodes closer to gateways. In a Stackelberg competition game, buyer agents (users) and sellers (gateways) make decisions using reinforcement learning (RL), with decentralized Deep Q-Networks to buy and sell forwarding resources. We allow communication links between the buyers with a limited messaging space, without defining a collusion mechanism. The idea is to demonstrate that through messaging, and RL tacit collusion can emerge between agents in a decentralized setup. The multi-agent reinforcement learning (MARL) system is presented and analyzed from a machine-learning perspective. Moreover, MARL dynamics are discussed via mean field analysis to better understand divergence causes and make implementation recommendations for such systems. Finally, the simulation results show the results of coordination among the users.

42 ENGINEERING↗
DOE OSTI2020

A robust offering strategy for wind producers considering uncertainties of demand response and wind power

This paper proposes a risk-constrained decision-making approach for a wind power producer participating in the day-ahead market. In the developed model, a flexible demand response trading scheme between the wind power producer and different customers is employed. Through the proposed demand response mechanism, the wind power producer is able to trade demand response resource internally with different customers, and then trade energy externally with the market to increase the expected profit and the wind energy utilization. The uncertainties in the wind power and demand response are modeled by using the information gap decision theory approach from risk averse (robust) and risk-seeking (opportunistic) perspectives. The objective of the robust model is to maximize the robust level while satisfying the desired profit, whereas the opportunistic model aims to evaluate the possibility of achieving windfall profits with favorable uncertainties. The overall offering strategy problem is modeled as a bi-objective mixed integer nonlinear programming, which is linearized by proper techniques and solved efficiently by using the normal boundary intersection technique. In this work, simulation results show that utilizing demand response resource to mitigate wind power deviations can increase a wind power producer's profit and reduce potential risks. In addition, the results demonstrate that the proposed bi-objective optimization approach enables the wind power producer to select appropriate offering decisions with respect to uncertainties.

17 WIND ENERGY↗
DOE OSTI2025

Regional and Temporal Variability of Atmospheric River Seasonality: Influences of Detection Algorithms and Moisture Transport Dynamics

Abstract Understanding the regional and temporal variability of atmospheric river (AR) seasonality is crucial for preparedness and mitigation of extreme events. While ARs were thought to peak in winter, recent research shows they exhibit region‐specific seasonality and are heavily influenced by the chosen detection algorithm. This study examines the link between the year‐to‐year consistency of peak‐AR activity to the presence of a dominant seasonal pattern, considering both location and algorithm choice. Regions are categorized by their temporal characteristics: consistent patterns (e.g., East Asia), patterns with occasional outliers (e.g., British Columbia coast), and regions lacking a clear dominant peak season (e.g., South Atlantic, parts of Australia). Hence, not all regions display a consistent seasonal cycle of AR activity. This study quantifies the extent to which a region experiences a dominant peak season of AR activity (or lacks one) and offers insights to enhance decision‐making in water management, natural hazard preparedness, and forecasting. Furthermore, given our finding that detection algorithms influence the peak season of AR activity, we also examine two diagnostic variables representative of moisture transport to corroborate our results. Integrated vapor transport, which captures meridional and zonal moisture transport, and Moist Wave Activity, representing moisture intrusions from lower to higher latitudes, are examined. Our analysis indicates that inconsistencies in the seasonal cycle of AR activity are not solely due to discrepancies in detection algorithms but also arise from changes in moisture transport. Plain Language Summary Atmospheric rivers (ARs) are critical weather phenomena that can cause extreme events like heavy rainfall and flooding. Understanding when and where ARs are most likely to occur throughout the year is essential for preparing and responding to these events. Traditionally, ARs were thought to peak in winter, but recent studies show this varies by region. Our study helps address the challenge decision‐makers face in anticipating and preparing for AR events by providing insights into the consistency of peak seasonal patterns across different areas. Some regions, like East Asia, and the British Columbia coast, show a consistent peak season, while others, like the South Atlantic and parts of Australia, have significant year‐to‐year variations, making it hard to identify a dominant season. To better understand these changes over time, the study also examines how moisture moves in the atmosphere, using Integrated Vapor Transport (which looks at moisture movement in various directions) and Moist Wave Activity (which tracks moisture shifts from lower to higher latitudes). The findings suggest that inconsistencies in AR patterns are due not only to detection methods but also due to changes in moisture transport. Key Points The peak season of atmospheric river activity can change depending on the year in some areas Interannual variations in the peak season can make identifying a dominant season challenging for some regions Frequent shifts in peak season across years reflect inconsistencies tied to detection algorithms and to underlying dynamics

Kamnani, Diya↗
DOE OSTI2021

Towards developing multiscale-multiphysics models and their surrogates for digital twins of metal additive manufacturing

Artificial intelligence (AI) embedded within digital models of manufacturing processes can be used to improve process productivity and product quality significantly. The application of such advanced capabilities particularly to highly digitalized processes such as metal additive manufacturing (AM) is likely to make those processes commercially more attractive. AI capabilities will reside within Digital Twins (DTs) which are living virtual replicas of the physical processes. DTs will be empowered to operate autonomously in a diagnostic control capacity to supervise processes and can be interrogated by the practitioner to inform the optimal processing route for any given product. The utility of the information gained from the DTs would depend on the quality of the digital models and, more importantly, their faster-solving surrogates which dwell within DTs for consultation during rapid decision-making. In this article, we point out the exceptional value of DTs in AM and focus on the need to create high-fidelity multiscale-multiphysics models for AM processes to feed the AI capabilities. We identify technical hurdles for their development, including those arising from the multiscale and multiphysics characteristics of the models, the difficulties in linking models of the subprocesses across scales and physics, and the scarcity of experimental data. We discuss the need for creating surrogate models using machine learning approaches for real-time problem-solving. We further identify non-technical barriers, such as the need for standardization and difficulties in collaborating across different types of institutions. We offer potential solutions for all these challenges, after reflecting on and researching discussions held at an international symposium on the subject in 2019. Here, we argue that a collaborative approach can not only help accelerate their development compared with disparate efforts, but also enhance the quality of the models by allowing modular development and linkages that account for interactions between the various sub-processes in AM. A high-level roadmap is suggested for starting such a collaboration.

36 MATERIALS SCIENCE↗
DOE OSTI2021

Resilience-Oriented DG Siting and Sizing Considering Stochastic Scenario Reduction

In this paper, a fuel-based distributed generator (DG) allocation strategy is proposed to enhance the distribution system resilience against extreme weather. The long-term planning problem is formulated as a two-stage stochastic mixed-integer programming (SMIP). The first stage is to make decisions of DG siting and sizing under the given budget constraint. In the second stage, a post-extreme-event-restoration (PEER) is employed to minimize the operating cost in an uncertain fault scenario. In particular, this study proposes a method to select the most representative scenarios for the SMIP. First, a Monte Carlo Simulation (MCS) is introduced to generate sufficient scenarios considering random fault locations and load profiles. Then, the number of scenarios is reduced by the K-means clustering algorithm. The advantage of scenario reduction is to make a trade-off between accuracy and computational efficiency. Finally, the SMIP is solved by the progressive hedging algorithm. Here, the case studies of the IEEE 33-bus and 123-bus test systems demonstrate the effectiveness of the proposed algorithm in reducing the expected energy not served (EENS), which is a critical criterion of resilience.

42 ENGINEERING↗
DOE OSTI2020

Removing the Cloak of Secrecy from Legacy Cleanup at Los Alamos national Laboratory - 20395

With the establishment in 2018 of the Los Alamos Legacy Cleanup Contract, the Department of Energy's (DOE) Environmental Management Los Alamos Field Office (EM-LA) and its contractor Newport News Nuclear BWXT Los Alamos (N3B) embarked on an expansive program to engage a broad range of local and regional stakeholders in the decision-making process for cleanup of legacy wastes (pre-1999) at the Los Alamos National Laboratory (LANL). From the inception of LANL during the Manhattan Project until the issuance of the new cleanup contract, the site was managed by a single management and operations (M and O) contactor whose main focus was national security. Segmenting from laboratory operations a separate cleanup contract managed by DoE's Office of Environmental Management (EM) brought new opportunities for the cleanup of legacy waste. That change likewise has opened new opportunities for engaging the community on legacy cleanup decisions. The new legacy cleanup contract - an unclassified contract - emphasizes public outreach, marking a cultural shift in how stakeholders in Los Alamos and throughout northern New Mexico are engaged. Without the constraints of classified work, EM-LA and N3B have increased the level of transparency with the public regarding cleanup activities. EM-LA and N3B have crafted an approach that best meets the values, priorities and needs of the neighboring communities by adapting the model successfully employed at Rocky Flats. Through enhanced stakeholder involvement, EM-LA will implement decisions that have considered broad input and deliver a safe and efficient cleanup of the site. EM-LA and N3B began the expanded stakeholder outreach program in January 2019, leading up to four Environmental Management Cleanup Forums held in the summer of 2019. EM-LA and N3B are now in the process of initiating a series of meetings with various stakeholder groups to determine their 'values' as they relate to cleanup using a novel approach that elicits and records values. The entire process is documented, ensuring that should questions arise about how, when and why decisions were made, they can be easily addressed. In addition to other public meetings to present cleanup scenarios and solicit active public involvement in cleanup decisions, the EM-LA and N3B approach involves discussions with stakeholders who want to explore specific technical issues and cleanup discussions in depth. EM-LA and N3B are also evaluating and implementing a variety of communications tools to help ensure the engagement plan sets the gold standard for transparency in legacy cleanup and stakeholder involvement. (authors)

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗
DOE OSTI2021

A systems engineering framework for the optimization of food supply chains under circular economy considerations

The current linear “take-make-waste-extractive” model leads to the depletion of natural resources and environmental degradation. Circular Economy (CE) aims to address these impacts by building supply chains that are restorative, regenerative, and environmentally benign. This can be achieved through the re-utilization of products and materials, the extensive usage of renewable energy sources, and ultimately by closing any open material loops. Such a transition towards environmental, economic and social advancements requires analytical tools for quantitative evaluation of the alternative pathways. Here, in this work, we present a novel CE system engineering framework and decision-making tool for the modeling and optimization of food supply chains. First, the alternative pathways for the production of the desired product and the valorization of wastes and by-products are identified. Then, a Resource-Task-Network representation that captures all these pathways is utilized, based on which a mixed-integer linear programming model is developed. This approach allows the holistic modeling and optimization of the entire food supply chain, taking into account any of its special characteristics, potential constraints as well as different objectives. Considering that typically CE introduces multiple, often conflicting objectives, we deploy here a multi-objective optimization strategy for trade-off analysis. A representative case study for the supply chain of coffee is discussed, illustrating the steps and the applicability of the framework. Single and multi-objective optimization formulations under five different coffee-product demand scenarios are presented. The production of instant coffee as the only final product is shown to be the least energy and environmental efficient scenario. On the contrary, the production solely of whole beans sets a hypothetical upper bound on the optimal energy and environmental utilization. In both problems presented, the amount of energy generated is significant due to the utilization of waste generated for the production of excess energy.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2025

DRE: Designing for Resilience through Emulation

Threats to cyber- and cyber-physical systems have continued to increase over the past decade. Now more than ever, it is vital that cyber-physical system stakeholders have the tools to deeply understand their systems and the threats they face. High-fidelity modeling capabilities are powerful tools to support system understanding and decision-making, but they currently lack scientifically rigorous experimentation practices and infrastructures. The purpose of the project Designing for Resilience through Emulation (DRE) was to bring together past research and existing tools into a new pipeline to improve our ability to quantitatively evaluate future cyber scenarios. DRE offers new integrated capabilities for large dataset collection, noise studies, sensitivity analysis, uncertainty quantification, and surrogate modeling using a cyber-physical system emulation environment. These new capabilities significantly improve our ability to establish the credibility of the answers derived from emulation environments, ultimately leading to better critical decision support.

45 MILITARY TECHNOLOGY, WEAPONRY, AND NATIONAL DEF↗
DOE OSTI2025

Including frameworks of public health ethics in computational modelling of infectious disease interventions

Decisions on public health interventions to control infectious diseases are often informed by computational models. Interpreting the predicted outcomes of a public health decision requires not only high-quality modelling but also an ethical framework for assessing the benefits and harms associated with different options. The design and specification of ethical frameworks matured independently of computational modelling, so many values recognized as important for ethical decision-making are missing from computational models. We demonstrate a proof-of-concept approach to incorporate multiple public health values into the evaluation of a simple computational model for vaccination against a pathogen such as SARS-CoV-2. By examining a bounded space of alternative prioritizations of three values relevant to public health ethics (aggregate clinical burden, equity in clinical burden, equity in adverse effects from vaccination), we identify value trade-offs, where the outcomes of optimal strategies differ depending on the ethical framework. This work demonstrates an approach to incorporating diverse values into decision criteria used to evaluate outcomes of models of infectious disease interventions.

"Mathematical Biology"↗
DOE OSTI2024

Assessing the behavioral realism of energy system models in light of the consumer adoption literature

Effective policymaking to achieve net zero greenhouse gas emissions demands an understanding of the complex drivers of, and barriers to, consumer adoption behavior via behaviorally realistic energy system models. Existing models tend to oversimplify by focusing on homogenized financial factors while neglecting consumer heterogeneity and non-monetary influences. This study develops and applies a comprehensive framework for evaluating the behavioral realism of consumer adoption models, informed by the adoption literature. It introduces a typology for factors influencing low-carbon technology adoption decisions: monetary and non-monetary factors relating to household characteristics, psychology, technological attributes, and contextual conditions. Next, reviews of the consumer adoption and decision-making literature identify the most influential adoption factor categories for distributed solar photovoltaics, electric vehicles, and air-source heat pumps. Finally, the extent to which a selection of energy system models accounts for these adoption factors is assessed. Existing models predominantly emphasize the economic aspects of technology, which are generally identified as the most important factors. Where the models fall short — in considering moderately important factor categories — sector-specific and agent-based models can offer more behaviorally realistic insights. This study sheds light on which types of factors are most important for consumer adoption decisions and investigates how well current models rise to the challenge of behavioral realism. The end-to-end analysis presented enables internally consistent comparisons across models and energy technologies. This research advances timely conversations on consumer adoption. It could inform more behaviorally realistic energy system modeling, and thereby more effective decarbonization policymaking.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2024

Towards Next-Generation Urban Decision Support Systems through AI-Powered Construction of Scientific Ontology Using Large Language Models—A Case in Optimizing Intermodal Freight Transportation

The incorporation of Artificial Intelligence (AI) models into various optimization systems is on the rise. However, addressing complex urban and environmental management challenges often demands deep expertise in domain science and informatics. This expertise is essential for deriving data and simulation-driven insights that support informed decision-making. In this context, we investigate the potential of leveraging the pre-trained Large Language Models (LLMs) to create knowledge representations for supporting operations research. By adopting ChatGPT-4 API as the reasoning core, we outline an applied workflow that encompasses natural language processing, Methontology-based prompt tuning, and Generative Pre-trained Transformer (GPT), to automate the construction of scenario-based ontologies using existing research articles and technical manuals of urban datasets and simulations. From these ontologies, knowledge graphs can be derived using widely adopted formats and protocols, guiding various tasks towards data-informed decision support. The performance of our methodology is evaluated through a comparative analysis that contrasts our AI-generated ontology with the widely recognized pizza ontology, commonly used in tutorials for popular ontology software. We conclude with a real-world case study on optimizing the complex system of multi-modal freight transportation. Our approach advances urban decision support systems by enhancing data and metadata modeling, improving data integration and simulation coupling, and guiding the development of decision support strategies and essential software components.

96 KNOWLEDGE MANAGEMENT AND PRESERVATION↗
DOE OSTI2020

Management of Risk and Uncertainty Through Optimized Co-Operation of Transmission Systems and Microgrids with Responsive Loads (Final Report)

The evolution of the power system to the reliable, efficient and sustainable system of the future will involve development of both demand- and supply-side technology and operations. Ambitious national and state-level goals around the decarbonization of electricity relies on the integration of very high levels of renewable resources, most of which are variable and intermittent. The use of demand response is an ideal approach to counterbalance the intermittency of renewable generation and brings the consumer into the spotlight. Until recently, very little research had been conducted on the co-optimization of these two systems due to computational limitations. However, advances in computational capabilities, and the judicious use of decomposition methods and innovative approximation methods for high-dimension dynamic programming made this goal a viable objective for this project, leading to a fundamental shift in the ability to integrate and fully utilize demand-side resources. To this end, the modeling framework developed introduces a novel co-optimization framework, to include the operations of both the transmission and distribution systems (or microgrids) in operational decision making. This framework was used to analyze renewable and distributed generation along with responsive demand and to compare the capability of co-optimized systems to perform with higher levels of variable renewables. Results show that the use of a bi-level optimization approach is an appropriate structure, capable of co-optimizing a transmission system with multiple distribution systems and microgrids. While increasing the number of connected systems provides increasing flexibility for renewables integration this can also the economic benefits to the low-voltage subsystems with each additional system connected. Comparison of a traditional single-level decision structure with the co-optimization approach illustrates a reduction in overall system cost under co-optimization, while specific cost allocations to transmission and distribution systems are changed.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2024

Making It Happen: On-Site Renewable Energy and Storage Challenges and Solutions for Commercial Buildings: Preprint

The U.S. Department of Energy's (DOE's) Better Climate Challenge invites organizations to partner with DOE to set ambitious, portfolio-wide greenhouse gas (GHG) emissions reduction goals. To better understand the barriers to these goals and to demonstrate successful emissions reduction pathways, organizations can access working groups as one form of technical assistance from leading experts. One working group focus was the use of on-site renewable energy and storage - a key decarbonization strategy after energy efficiency. Members of the Better Climate Challenge onsite renewable energy and storage working group first identified barriers to implementing these technologies. Solutions were then brainstormed to support portfolio building owners to move from single systems to widespread implementation. Example insights include improving understandings of installation processes and location decisions, making the business case to relevant stakeholders, discussing unanticipated challenges throughout the process, and replicating these technologies across portfolios. This paper details valuable market feedback and highlights pathways to move toward widespread deployment of renewable energy and storage solutions.

building decarbonization strategies↗
DOE OSTI2026

Toward a standardization of cryostructure and cryogenic soil structure terminology for the field description of permafrost‐affected soils

This paper establishes standardized terminology and field documentation protocols for cryostructures and cryogenic soil structures in permafrost‐affected soils and provides brief guidance on descriptions of ground ice morphology and ice volume estimates. We consolidate permafrost terminology from Russian and North American literature, clarify long‐standing ambiguities, and provide explicit guidelines that align with US Department of Agriculture‐Natural Resources Conservation Service soil description standards. Our scheme makes critical distinctions between cryostructure, the distribution of ice within soil, and cryogenic soil structure, the morphological structure of soil resulting from ice formation. The scheme organizes cryostructures into three main categories: non‐segregated ice, visible segregated ice, and ice matrices. We introduce standardized codes and parameters for field descriptions of ice and soil that enable machine‐readable data collection compatible with existing soil information systems. This standardization will significantly enhance the integration of field observations into landscape‐scale assessments of permafrost stability, infrastructure vulnerability, and ecosystem response to permafrost thaw, addressing an urgent need for quantitative data to inform modeling and decision‐making in rapidly changing Arctic and subarctic environments.

Andersen, Megan L. [University of Minnesota, Saint↗
DOE OSTI2020

Stochastic Analysis for Long Term Capital Structures, Systems, and Components Refurbishment and Replacement

As commercial Nuclear Power Plants (NPPs) pursue extended plant operation in the form of Second License Renewal (SLR), opportunities exist for these plants to provide capital investments to ensure long-term safe and economic performance. At the current time, several utilities have announced an intention to pursue extended operation for one or more of their NPPs via SLR . The goal of this research is to develop a risk-informed approach to evaluate and prioritize plant capital investments made in preparation for, and during the period of, extended plant operations to support decisions for NPP operations. Since the capital investments are influenced by various factors, such as markets, safety and regulatory, the decision-making process of NPP operations should take into account relevant factors for balancing risks, costs and profits. The traditional method of capital budgeting is based on the priority list of candidate projects using economic measures such as benefit-investment ratio, net present value (NPV) and internal rate of return. In the literatures, the problem of capital budgeting or the variant can be represented by an appropriate knapsack problem. The knapsack approach to capital budgeting takes as input as investment, along with the cost and profit of each project. The objective of capital budgeting is to find the combination of the binary decisions for every investment such that the overall profit is as large as possible. The output is a collection of projects to be carried out, and we refer this selected collection of projects as a project portfolio. One limitation of traditional optimization models for capital budgeting is that they do not account for risk/uncertainty in profit and cost streams associated with individual projects, they do not account for risk in resource availability in future years [1,2,3]. Projects can incur cost over-runs, especially when projects are large, performed infrequently, and when there is risk regarding technical viability, external contractors, and/or suppliers of requisite parts and materials. Occasionally, projects are performed ahead of schedule and with cost savings. Planned budgets for capital improvements can be cut and key personnel may be lost. Or, there may be surprise windfalls in budgets for maintenance activities due to decreased costs for “unplanned” maintenance. In these cases, how should we resolve capital budgeting when we have risk forecasts for costs, profits and budgets? One approach we proposed in this summary is to re-solve the optimization models based on assumed statistical distributions of given parameters. If these distributions were not available, a two-stage stochastic optimization approach can be used to provide priority lists to decision-makers to support better risk-informed decisions [4, 5]. In this summary, we will only focus on the first approach.

42 ENGINEERING↗