In this paper, the operational planning problem for utility systems is
formulated as a mixed-integer linear program (MILP). For multiperiod
operation with piecewise constant varying demands for utilities, the o
ptimal choice of units for each period is determined. The objective fu
nction accounts for both the operating costs for each period and chang
eover costs for startup/shutdown of units each between periods of oper
ation. A two-stage approach is proposed that requires the solution of
MILP subproblems coupled with a shortest path algorithm, resulting in
orders of magnitude reduction in computation time as compared to a dir
ect MILP solution using branch and bound enumeration. The computationa
l requirements of the algorithm are linear with respect to the number
of periods and global solution of the MILP is guaranteed. Solution of
three sample problems yield savings up to 5% in total annual cost of o
peration with the main advantage being the simplicity of the proposed
plan (few startups and shutdowns). (C) 1997 Elsevier Science Ltd.