A decision support algorithm to assess cost-effective control of detriments associated with a production planning system

In systems where production of a commodity or service is accompanied by simultaneous generation of detriments, reduction of the latter usually implies increase in production cost. This leaves considerable scope for sustainable decisions regarding the extent to which control of detriments can be done in a cost effective manner. One example of such a system is production of power over an energy management scenario, where control of pollution from thermal units attracts considerable interest due to the environmental and economic implications. This paper presents an approach that decides the optimality for cost effective control of detriments accompanying a production process. The total burden on the production system is viewed in terms of two components, namely, a cost burden and a detriment burden; both considered relative to their values for the base case, which incorporates no control for detriments. The cost effective decision is obtained as an optimal tradeoff between the two burdens. The concept is formulated for the general production planning system, as well as for application to an energy management scenario. An illustrative case study adapted from the existing Indian energy scenario is used to highlight the applicability of the approach.