An Inventory Modeling Analysis of Hydrogen Fueling Station Capacity Considering an Outside Option
Pardalos, Panos M.
A number of issues have to be addressed in order for a hydrogen economy to become a reality, including the need to expand hydrogen infrastructure to accommodate vehicular needs. The design of a hydrogen station is a complex problem that entails the determination of numerous operating parameters including the overall hydrogen fueling station capacity. In this paper, a newsvendor formulation is selected to form the basis of capacity determination, in particular, the classical formulation with an outside option that reflects the added value that a consumer might give to hydrogen. This study demonstrates the behavior of optimal capacity decisions for hydrogen stations related to demand distribution, consumer behavior, and economics of hydrogen fuel. Moreover, through assessing the consequences of adding extra capacity for stimulating demand, this paper suggests opportunities for additional profits. The results from our study highlight the effect that consumer beliefs have on demand and optimal station size.
S. E. Grasman et al., "An Inventory Modeling Analysis of Hydrogen Fueling Station Capacity Considering an Outside Option," Energy Systems, Springer Verlag, Jan 2013.
The definitive version is available at http://dx.doi.org/10.1007/s12667-012-0074-9
Engineering Management and Systems Engineering
Keywords and Phrases
Energy Infrastructure; Capacity Sizing; Consumer Behavior
Article - Journal
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