Optimizing production schedule with energy consumption and demand charges in parallel machine setting

Environmental sustainability concerns, along with the growing need for electricity and associated costs, make energy-cost reduction an inevitable decision-making criterion in production scheduling. In this research, we study the problem of production scheduling on non-identical parallel machines with machine-dependent processing times and known job release dates to minimize total completion time and energy costs. The energy costs in this study include demand and consumption charges. We present a mixed-integer nonlinear model to formulate the problem. The model is then linearized and its performance is tested through numerical experiments.