International Journal of Supply and Operations Management

International Journal of Supply and Operations Management

A Scenario-Based Stochastic MILP Model for Sustainable Reconfiguration of Smart Grids in the Electricity Supply Chain under Uncertainty

Articles in Press

Document Type : Research Paper

Authors
Sara Mohammadi 1
mariam ameli 2
Hamed Davari-Ardakani 2
1 Department of Mechanical, Industrial and Aerospace Engineering, Concordia University, Montreal, Canada
2 Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran
10.22034/ijsom.2026.111015.3556
Abstract
Objective: This study develops a sustainable reconfiguration framework for smart grids in electricity supply chain networks under uncertainty. The research aims to integrate strategic redesign and operational decisions while simultaneously addressing economic and environmental objectives.
Methods: A two-stage scenario-based stochastic mixed-integer linear programming (MILP) model is developed to minimize total network cost and greenhouse gas emissions under uncertain electricity demand and selling prices. The bi-objective model is solved using the augmented epsilon-constraint (AUGMECON) method to generate Pareto-efficient solutions. Stochastic performance measures, including the Value of the Stochastic Solution (VSS) and Expected Value of Perfect Information (EVPI), are also employed to evaluate the value of considering uncertainty.
Results: The results show that explicitly incorporating uncertainty changes the trade-off between economic and environmental objectives and leads to redesign strategies that outperform deterministic solutions under different operating conditions. Electricity demand has a greater influence on network cost than electricity selling price, while the transmission and distribution loss coefficient is identified as the most influential parameter affecting economic performance. The VSS confirms the economic benefit of explicitly considering uncertainty, while the EVPI demonstrates the value of improved information for redesign decisions.
Conclusion: The study integrates strategic reconfiguration decisions, including the installation and closure of generation and distributed generation facilities, with operational decisions on electricity generation, pricing, load allocation, and capacity planning within a unified stochastic framework. The proposed approach provides decision support for coordinated and sustainable smart grid reconfiguration under uncertain operating conditions.
Keywords
network design
decision making
stochastic programming
redesign
multi-objective optimization
Subjects
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International Journal of Supply and Operations Management

Articles in Press, Accepted Manuscript
Available Online from 23 September 2026