Energy generation from intermittent renewable sources introduces additional variability into electrical systems, resulting in a higher cost of balancing against the increased variabilities. Ways to balance demand and supply for electricity include using flexible generation resources, storage...

Problem Definition: Energy storage has become an indispensable part of power distribution systems, necessitating prudent investment decisions. We analyze an energy storage facility location problem and compare the benefits of centralized storage (adjacent to a central energy generation site)...

The value of seasonal energy storage depends on how the firm operates storage to capture seasonal price spreads. Energy storage operations typically face limited operational flexibility characterized by the speed of storing and releasing energy, which makes the optimal policy, in general,...

This paper examines the inventories of publicly traded American manufacturing companies between 1981 and 2000. The median of inventory holding periods were reduced from 96 days to 81 days. The average rate of inventory reduction is about 2% per year. The greatest reduction was found for...

This paper examines the inventories of publicly traded U.S. retail and wholesale companies between 1981 and 2004. First, we document that inventory holdings have been reduced. The median of wholesale inventory holding periods was reduced from 73 days to 49 days. Retail inventory did not start to...

The relationship between commodity inventory and short-term price variations has received considerable attention, but the understanding has been limited to single-stage cross-sectional relation. In this paper, we aim to deepen our understanding of the inventory-price relationship in two...

This paper analyzes a unit-contingent power purchase agreement between an electricity distributor and a power plant. Under such a contract the distributor pays the plant a fixed price if the plant is operational and nothing if plant outage occurs. Pricing a unit-contingent contract is...