Under the smart grid environment, demand response resources (DRRs) are introduced as a virtual power plant to enhance power system adequacy. DRRs often fail to reduce their load due to some external factors. In this paper, a reliability model of a DRR is constructed as multi-state conventional generation units, where the probability, frequency of occurrence, and departure rate of each state can...

We explore the relevance of the risk attitude of managers to the investment-uncertainty relation. Higher moments of the distribution of net profits are used to measure the risk premium of the firm, from which we derive a proxy for the risk aversion of managers. Using an unbalanced panel of Dutch listed firms, we find that in general a low degree of risk aversion coincides with a positive impact...

This paper investigates the impacts of both the demand uncertainty and the supply disruption probability on the decisions of two sourcing strategies: one is dual sourcing and the other is single sourcing with contingent supply. The expected profit functions and the optimal decisions of the buyer are derived and compared. Then sensitivity analysis is given through numerical examples. Explicit in...

Key challenge for mastering high uncertainty of both demand and supply is to attune products and business processes in the entire supply chain continuously to customer requirements. Product configurators have proven to be powerful tools for managing demand uncertainty. This paper assesses how configurators can be used for combined product and process configuration in order to support mastering ...

Based on a particular case study, this paper presents two approaches to buffer management under demand uncertainty, which is characterized by high lumpiness, dispersion and volatility. The common theme of both of the two approaches is not to find an advanced statistical method to improve demand forecast on the basis of historical data. Rather, these approaches provide new business paradigms to ...