Optimization modeling for capacity planning of production facilities and alternative facilities with consumable capacity

This paper deals with aspects of optimization modeling for the capacity planning of production facilities and alternative facilities with consumable capacity. Application areas are in the waste management field where production-like facilities (e.g., combustion facilities) with utilization rate constraints may be utilized to satisfy the demand for waste disposal. During periods of high demand or production facilty downtime, alternative facilities with consumable capacity (e.g., landfills) may be utilized to satisfy waste disposal demand. The utilization of the consumable capacity facility is not limited by a rate constraint, but rather through an overall consumptive limit. A dynamic programming formulation is proposed for the solution of this capacity planning problem, and the verification of the associated computer program is addressed. Results for the City of Durham, NC, USA are presented.