Search results for: cleaner production options

Authors: I. Inthanongsone, C. Drebenstedt, J. C. Bongaerts, P. Sontamino

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The major concern in evaluating the value of mining projects related to the deficiency of the traditional discounted cash flow (DCF) method. This method does not take uncertainties into account and, hence it does not allow for an economic assessment of managerial flexibility and operational adaptability, which are increasingly determining long-term corporate success. Such an assessment can be performed with the real options valuation (ROV) approach, since it allows for a comparative evaluation of unforeseen uncertainties in a project life cycle. This paper presents an economic evaluation model for open pit mining projects based on real options valuation approach. Uncertainties in the model are caused by metal prices and cost uncertainties and the system dynamics (SD) modeling method is used to structure and solve the real options model. The model is applied to a case study. It can be shown that that managerial flexibility reacting to uncertainties may create additional value to a mining project in comparison to the outcomes of a DCF method. One important insight for management dealing with uncertainty is seen in choosing the optimal time to exercise strategic options.

Keywords: DCF methods, ROV approach, system dynamics modeling methods, uncertainty

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Authors: Driss Haddouche

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Pastoral crisis in Algeria has its origins in rangeland degradation which are the main factor in any activity in the steppe zones. Indeed, faced with the increasing human and animal population on a living space smaller and smaller, there is an overuse of what remains of the steppe range lands, consequently the not sustainability of biomass production. Knowing the amount of biomass available, the practice of grazing options, taking into account the use of "Use Factor" factor remains an essential method for managing pastoral resources. This factor has three options: at 40% Conservative pasture; at 60 % the beginning of overgrazing; at 80% destructive grazing. Accessibility on the pasture is based on our field observations of a type any flock along a grazing cycle. The main purpose of these observations is to highlight the speed of herd grazing situation. Several individuals from the herd were timed to arrive at an average duration of about 5 seconds to move between two tufts of grass, separated by a distance of one meter. This gives a rate of 5 s/m (0.72 km/h) flat. This speed varies depending on the angle of the slope. Knowing the speed and slope of each pixel of the study area, given by the digital elevation model of Spot Image (MNE) and whose pitch is 15 meters, a map of pasture according to the distances is generated. Knowing the stocking and biomass available, the examination of the common Mécheria at regular distances (8.64 km or 12 hours of grazing, 17.28 km or 24 hours of grazing and 25.92 Km or 36 hours of grazing), offers three different options (conservation grazing resource: utilization at 40%; overgrazing statements for use at 60% and grazing destructive for use by more than 80%) for each distance traveled by sheep from the starting point is the town of Mécheria.

Keywords: pastoral crisis, biomass, animal charge, use factor, Algeria

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Authors: Justyna Rybicka, Ashutosh Tiwari, Shane Enticott

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In the age of automation and computation aiding manufacturing, it is clear that manufacturing systems have become more complex than ever before. Although technological advances provide the capability to gain more value with fewer resources, sometimes utilisation of the manufacturing capabilities available to organisations is difficult to achieve. Flexible manufacturing systems (FMS) provide a unique capability to manufacturing organisations where there is a need for product range diversification by providing line efficiency through production flexibility. This is very valuable in trend driven production set-ups or niche volume production requirements. Although FMS provides flexible and efficient facilities, its optimal set-up is key in achieving production performance. As many variables are interlinked due to the flexibility provided by the FMS, analytical calculations are not always sufficient to predict the FMS’ performance. Simulation modelling is capable of capturing the complexity and constraints associated with FMS. This paper demonstrates how discrete event simulation (DES) can address complexity in an FMS to optimise the production line performance. A case study of an automotive FMS is presented. The DES model demonstrates different configuration options depending on prioritising objectives: utilisation and throughput. Additionally, this paper provides insight into understanding the impact of system set-up constraints on the FMS performance and demonstrates the exploration into the optimal production set-up.

Keywords: discrete event simulation, flexible manufacturing system, capacity performance, automotive

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Authors: Marco A. S. González, Marlova P. Kulakowski, Luciano G. Breitenbach, Felipe Kirch

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The AEC sector has an expressive environmental responsibility. Actually, most building materials have severe environmental impacts along their production cycle. Professionals enrolled in building design may choice the materials and techniques with less impact among the viable options. This work presents a study about embodied energy in materials of two typical Brazilian constructive alternatives. The construction options considered are reinforced concrete structure and structural masonry. The study was developed for the region of São Leopoldo, southern Brazil. Results indicated that the energy embodied in these two constructive systems is approximately 1.72 GJ•m-2 and 1.26 GJ•m-2, respectively. It may be concluded that the embodied energy is lower in the structural masonry system, with a reduction around to 1/4 in relation to the traditional option. The results can be used to help design decisions.

Keywords: civil construction, sustainability, embodied energy, Brazil

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Authors: Isabel Schestak, Jan Spriet, David Styles, Prysor Williams

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Breweries and distilleries are well-known for their high water usage. The water consumption in a UK brewery to produce one litre of beer reportedly ranges from 3-9 L and in a distillery from 7-45 L to produce a litre of spirit. This includes product water such as mashing water, but also water for wort and distillate cooling and for cleaning of tanks, casks, and kegs. When cooling towers are used, cooling water can be the dominating water consumption in a brewery or distillery. Interlinked to the high water use is a substantial heating requirement for mashing, wort boiling, or distillation, typically met by fossil fuel combustion such as gasoil. Many water and waste water streams are leaving the processes hot, such as the returning cooling water or the pot ales. Therefore, several options exist to optimise water and energy efficiency of spirit production through heat recovery. Although these options are known in the sector, they are often not applied in practice due to planning efforts or financial obstacles. In this study, different possibilities and design options for heat recovery systems are explored in four breweries/distilleries in the UK and assessed from an economic but also environmental point of view. The eco-efficiency methodology, according to ISO 14045, is applied to combine both assessment criteria to determine the optimum solution for heat recovery application in practice. The economic evaluation is based on the total value added (TVA) while the Life Cycle Assessment (LCA) methodology is applied to account for the environmental impacts through the installations required for heat recovery. The four case study businesses differ in a) production scale with mashing volumes ranging from 2500 to 40,000 L, in b) terms of heating and cooling technology used, and in c) the extent to which heat recovery is/is not applied. This enables the evaluation of different cases for heat recovery based on empirical data. The analysis provides guidelines for practitioners in the brewing and distilling sector in and outside the UK for the realisation of heat recovery measures. Financial and environmental payback times are showcased for heat recovery systems in the four distilleries which are operating at different production scales. The results are expected to encourage the application of heat recovery where environmentally and economically beneficial and ultimately contribute to a reduction of the water and energy footprint in brewing and distilling businesses.

Keywords: brewery, distillery, eco-efficiency, heat recovery from process and waste water, life cycle assessment

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Authors: Koami West Togbetse

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The global shift towards clean and sustainable energy sources, known as the energy transition, is compelling numerous countries to transition from polluting energy systems to cleaner alternatives, commonly referred to as green energies. In this context, cobalt holds significant importance as a crucial mineral in facilitating this energy transition due to its pivotal role in electric batteries. Considering the Democratic Republic of Congo’s reputation for political instability and its position as the largest producer of cobalt, possessing over 50% of the world’s reserves, we have assessed the potential conflicts that may arise as a result of the rapid increase in cobalt demand. The results show that cobalt does not appear to be a determinant contributing to all past conflicts over the study period in the Democratic Republic of Congo (DRC). Gold, on the other hand, stands out as one of the coveted metals for rebel groups engaged in rampant exploitation, increasing the likelihood of conflicts occurring. However, a more in-depth analysis reveals a shift in the relationship between cobalt production and conflict events around 2006. Prior to 2006, increased cobalt production was significantly associated with a reduction in conflict events. However, after 2006, this relationship became positive, indicating that higher cobalt production is now linked to a slight increase in conflict events. This suggests a change in the dynamics affecting conflicts related to cobalt production before and after 2006. According to our predictive model, cobalt has the potential to emerge increasingly as a contributing factor, just like gold.

Keywords: conflicts, natural resources, energy transition, geopolitics

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Authors: John Kong Shan Ho

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In June 2022, the Law Commission of England and Wales published an options paper to examine how the law on corporate criminal liability can be reformed under the English system. The paper merely details options for reform and does not seek to make recommendations. However, the paper has ruled out the “respondeat superior” approach of the US and “corporate culture” approach of Australia as reform options. On balance, the preferred reform option of the Law Commission is the “senior officer” approach as currently adopted in Canada. This article is written against such background and argues that due to similarities between the English and Canadian systems, the latter’s approach is more ideal to be adopted by the former as a model for reform in this area.

Keywords: corporate criminal liability, identification principle, directing mind and will, England, Canada

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Authors: Luke Miller

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This paper develops an options pricing methodology to value strategic pricing strategies in the services sector. More specifically, this study provides a unifying taxonomy of current service sector pricing practices, frames these pricing decisions as strategic real options, demonstrates accepted option valuation techniques to assess service sector pricing decisions, and suggests future research areas where pricing decisions and real options overlap. Enhancing revenue in the service sector requires proactive decision making in a world of uncertainty. In an effort to strategically price service products, revenue enhancement necessitates a careful study of the service costs, customer base, competition, legalities, and shared economies with the market. Pricing decisions involve the quality of inputs, manpower, and best practices to maintain superior service. These decisions further hinge on identifying relevant pricing strategies and understanding how these strategies impact a firm’s value. A relatively new area of research applies option pricing theory to investments in real assets and is commonly known as real options. The real options approach is based on the premise that many corporate decisions to invest or divest in assets are simply an option wherein the firm has the right to make an investment without any obligation to act. The decision maker, therefore, has more flexibility and the value of this operating flexibility should be taken into consideration. The real options framework has already been applied to numerous areas including manufacturing, inventory, natural resources, research and development, strategic decisions, technology, and stock valuation. Additionally, numerous surveys have identified a growing need for the real options decision framework within all areas of corporate decision-making. Despite the wide applicability of real options, no study has been carried out linking service sector pricing decisions and real options. This is surprising given the service sector comprises 80% of the US employment and Gross Domestic Product (GDP). Identifying real options as a practical tool to value different service sector pricing strategies is believed to have a significant impact on firm decisions. This paper identifies and discusses four distinct pricing strategies available to the service sector from an options’ perspective: (1) Cost-based profit margin, (2) Increased customer base, (3) Platform pricing, and (4) Buffet pricing. Within each strategy lie several pricing tactics available to the service firm. These tactics can be viewed as options the decision maker has to best manage a strategic position in the market. To demonstrate the effectiveness of including flexibility in the pricing decision, a series of pricing strategies were developed and valued using a real options binomial lattice structure. The options pricing approach discussed in this study allows service firms to directly incorporate market-driven perspectives into the decision process and thus synchronizing service operations with organizational economic goals.

Keywords: option pricing theory, real options, service sector, valuation

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Authors: Steven Vusmuzi Mashego, Opeyeolu Timothy Laseinde

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This paper presents a case study on applying maintenance strategies observed in a turbo-generator at a coal power plant. Turbo generators are one of the primary and critical components in energy generation. It is essential to apply correct maintenance strategies and apply operational procedures accordingly. The maintenance strategies are implemented to ensure the high reliability of the equipment. The study was carried out at a coal power station which will transit to a cleaner energy source in the nearest future. The study is relevant as lessons learned in this system will support plans and operational models implemented when cleaner energy sources replace coal-powered turbines. This paper first outlines different maintenance strategies executed on the turbo-generator modules. Secondly, the impacts of human factors on a coal power station are discussed, and the findings prompted recommendations for future actions.

Keywords: maintenance strategies, turbo generator, operational error, human factor, electricity generation

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Authors: Suresh Reddi, Mathew Leslie, Vishnu S. Das

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Sustainable design is a prominent concept across all sectors of engineering and its importance is widely recognized within the Arabian Gulf region. Despite that sustainable or soft engineering options are not widely deployed in coastal engineering projects and a preference for utilizing ‘hard engineering’ solutions remain. The concept of soft engineering lies in “working together” with the nature to manage the coastline. This approach allows hard engineering options, such as breakwaters or sea walls, to be minimized or even eliminated altogether. Hard structures provide a firm barrier to wave energy or flooding, but in doing so they often have a significant impact on the natural processes of the coastline. This may affect the area locally or impact on neighboring zones. In addition, they often have a negative environmental impact and may create a sense of disconnect between the marine environment and local users. Soft engineering options, seek to protect the coastline by working in harmony with the natural process of sediment transport/budget. They often consider new habitat creation and creating usable spaces that will increase the sense of connection with nature. Often soft engineering options, where appropriately deployed can provide a low-maintenance, aesthetically valued, natural line of coastal protection. This paper deals with an overview of the following: The widely accepted soft engineering practices across the world; How this approach has been considered by Ramboll in some recent projects in Middle East and Asia; Challenges and barriers to use in using soft engineering options in the region; Way forward towards more widespread adoption.

Keywords: coastline, hard engineering, low maintenance, soft engineering options

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Authors: C. Müller, T. Ortmann, S. Scholl, H. J. Jördening

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Multienzymatic catalysis can be used as an alternative to chemical synthesis or hydrolysis of polysaccharides for the production of high value oligosaccharides from cheap resources such as sucrose. However, development of multienzymatic processes is complex, especially with respect to suitable conditions for enzymes originating from different organisms. Furthermore, an optimal configuration of the catalysts in a reaction cascade has to be found. These challenges can be approached by design of experiments. The system investigated in this study is a trienzymatic catalyzed reaction which results in laminaribiose production from sucrose and comprises covalently immobilized sucrose phosphorylase (SP), glucose isomerase (GI) and laminaribiose phosphorylase (LP). Operational windows determined with design of experiments and kinetic data of the enzymes were used to optimize the enzyme ratio for maximum product formation and minimal production of byproducts. After adjustment of the enzyme activity ratio to 1: 1.74: 2.23 (SP: LP: GI), different process options were investigated in silico. The considered options included substrate dependency, the use of glucose as co-substrate and substitution of glucose isomerase by glucose addition. Modeling of batch operation in a stirred tank reactor led to yields of 44.4% whereas operation in a continuous stirred tank reactor resulted in product yields of 22.5%. The maximum yield in a bienzymatic system comprised of sucrose phosphorylase and laminaribiose phosphorylase was 67.7% with sucrose and different amounts of glucose as substrate. The experimental data was in good compliance with the process model for batch operation. The continuous operation will be investigated in further studies. Simulation of operational process possibilities enabled us to compare various operational modes regarding different aspects such as cost efficiency, with the minimum amount of expensive and time-consuming practical experiments. This gives us more flexibility in process implementation and allows us, for example, to change the production goal from laminaribiose to higher oligosaccharides.

Keywords: design of experiments, enzyme kinetics, multi-enzymatic system, in silico process development

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Authors: Thomas Gerstner, Bastian von Harrach, Daniel Roth

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The Monte Carlo pathwise sensitivities approach is well established for smooth payoff functions. In this work, we present a new Monte Carlo algorithm that is able to calculate the pathwise sensitivities for discontinuous payoff functions. Our main tool is the one-step survival idea of Glasserman and Staum. Although this technique yields to new terms per observation, while differentiating, the algorithm is still efficient. As an application, we use the results for a two-dimensional calibration of a Coco-Bond, which we model with different types of discretely monitored barrier options.

Keywords: Monte Carlo, discretely monitored barrier options, pathwise sensitivities, Coco-Bond

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Authors: A. Chateauneuf, M. Mostoufi, D. Vyncke

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Monte Carlo (MC) simulation is a technique that provides approximate solutions to a broad range of mathematical problems. A drawback of the method is its high computational cost, especially in a high-dimensional setting, such as estimating the Tail Value-at-Risk for large portfolios or pricing basket options and Asian options. For these types of problems, one can construct an upper bound in the convex order by replacing the copula by the comonotonic copula. This comonotonic upper bound can be computed very quickly, but it gives only a rough approximation. In this paper we introduce the Comonotonic Monte Carlo (CoMC) simulation, by using the comonotonic approximation as a control variate. The CoMC is of broad applicability and numerical results show a remarkable speed improvement. We illustrate the method for estimating Tail Value-at-Risk and pricing basket options and Asian options when the logreturns follow a Black-Scholes model or a variance gamma model.

Keywords: control variate Monte Carlo, comonotonicity, option pricing, scientific computing

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Authors: Jiahau Guo, Yihe Zhang

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This paper proposes solutions for pricing options on stocks paying discrete dividends in markets with daily price limits. We first extend the intraday density function of Guo and Chang (2020) to a multi-day one and use the framework of Haug et al. (2003) to value European options on stocks paying discrete dividends. Next, we adopt the fast Fourier transform (FFT) to derive accurate and efficient formulae for American options and further employ the three-point Richardson extrapolation to accelerate the computation. Finally, the accuracy of our proposed methods is verified by simulations.

Keywords: daily price limit, discrete dividend, early exercise, fast Fourier transform, multi-day density function, Richardson extrapolation

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Authors: Rong-Tsorng Wang

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In this paper, we derive a pricing formula for catastrophe equity put options (or CatEPut) with non-homogeneous loss and approximated compound distributions. We assume that the loss claims arrival process is a nonhomogeneous Poisson process (NHPP) representing the clustering occurrences of loss claims, the size of loss claims is a sequence of independent and identically distributed random variables, and the accumulated loss distribution forms a compound distribution and is approximated by a heavy-tailed distribution. A numerical example is given to calibrate parameters, and we discuss how the value of CatEPut is affected by the changes of parameters in the pricing model we provided.

Keywords: catastrophe equity put options, compound distributions, nonhomogeneous Poisson process, pricing model

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Authors: Natalia M. Acevedo, Luis M. Jimenez, Erick Lambis

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Imperfections in the capital market are used to argue the relevance of the corporate risk management function. With corporate hedge, the value of the company is increased by reducing the volatility of the expected cash flow and making it possible to face a lower bankruptcy costs and financial difficulties, without sacrificing tax advantages for debt financing. With the propose to avoid exchange rate troubles over cash flows of Colombian exporting firms, this dissertation uses financial options, over exchange rate between Peso and Dollar, for realizing a financial hedge. In this study, a strategy of hedge is designed for an exporting company in Colombia with the objective of preventing fluctuations because, if the exchange rate down, the number of Colombian pesos that obtains the company by exports, is less than agreed. The exchange rate of Colombia is measured by the TRM (Representative Market Rate), representing the number of Colombian pesos for an American dollar. First, the TMR is modelled through the Geometric Brownian Motion, with this, the project price is simulated using Montecarlo simulations and finding the mean of TRM for three, six and twelve months. For financial hedging, currency options were used. The 6-month projection was covered with financial options on European-type currency with a strike price of $ 2,780.47 for each month; this value corresponds to the last value of the historical TRM. In the compensation of the options in each month, the price paid for the premium, calculated with the Black-Scholes method for currency options, was considered. Finally, with the modeling of prices and the Monte Carlo simulation, the effect of the exchange hedging with options on the exporting company was determined, this by means of the unit price estimate to which the dollars in the scenario without coverage were changed and scenario with coverage. After using the scenarios: is determinate that the TRM will have a bull trend and the exporting firm will be affected positively because they will get more pesos for each dollar. The results show that the financial options manage to reduce the exchange risk. The expected value with coverage is approximate to the expected value without coverage, but the 5% percentile with coverage is greater than without coverage. The foregoing indicates that in the worst scenarios the exporting companies will obtain better prices for the sale of the currencies if they cover.

Keywords: currency hedging, futures, geometric Brownian motion, options

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Authors: Aniruddha Joshi

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This paper discusses a simulation study of automated sand casting production system. Therefore, the first aims of this study is development of automated sand casting process model and analyze this model with a simulation software Witness. Production methodology aims to improve overall productivity through elimination of wastes and that leads to improve quality. Integration of automation with Simulation is beneficial to identify the obstacles in implementation and to take appropriate options to implement successfully. For this integration, there are different Simulation Software’s. To study this integration, with the help of “WITNESS” Simulation Software the model is created. This model is based on literature review. The input parameters are Setup Time, Number of machines, cycle time and output parameter is number of castings, avg, and time and percentage usage of machines. Obtained results are used for Statistical Analysis. This analysis concludes the optimal solution to get maximum output.

Keywords: automated sand casting production system, simulation, WITNESS software, performance evaluation

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Authors: S. Oladoyinbo, A. A. Tijani

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Multilevel inverters (MLI) are used at high power application based on their operation. There are 3 main types of multilevel inverters (MLI); diode clamped, flying capacitor and cascaded MLI. A cascaded MLI requires the least number of components to achieve same number of voltage levels when compared to other types of MLI while the flying capacitor has the minimum harmonic distortion. However, maximizing the advantage of cascaded H-bridge MLI and flying capacitor MLI, an improved MLI can be achieved with fewer components and better performance. In this paper an improved MLI is presented by asymmetrically integrating a flying capacitor to a cascaded H-bridge MLI also integrating an auxiliary transformer to the main transformer to decrease the total harmonics distortion (THD) with increased number of output voltage levels. Furthermore, the system is incorporated with a hybrid time and climate based solar panel cleaner and power selector which intelligently manage the input of the MLI and clean the solar panel weekly ensuring the environmental factor effect on the panel is reduced to minimum.

Keywords: multilevel inverter, total harmonics distortion, cascaded h-bridge inverter, flying capacitor

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Authors: Chen Yuan, Nick Green, Stuart Blackburn

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The investment casting process offers a great freedom of design combined with the economic advantage of near net shape manufacturing. It is widely used for the production of high value precision cast parts in particularly in the aerospace sector. Various combinations of materials have been used to produce the ceramic moulds, but most investment foundries use a silica based binder system in conjunction with fused silica, zircon, and alumino-silicate refractories as both filler and coarse stucco materials. However, in the context of advancing alloy technologies, silica based systems are struggling to keep pace, especially when net-shape casting titanium alloys. Study has shown that the casting of titanium based alloys presents considerable problems, including the extensive interactions between the metal and refractory, and the majority of metal-mould interaction is due to reduction of silica, present as binder and filler phases, by titanium in the molten state. Cleaner, more refractory systems are being devised to accommodate these changes. Although yttria has excellent chemical inertness to titanium alloy, it is not very practical in a production environment combining high material cost, short slurry life, and poor sintering properties. There needs to be a cost effective solution to these issues. With limited options for using pure oxides, in this work, a silica-free magnesia spinel MgAl₂O₄ was used as a primary coat filler and alumina as a binder material to produce facecoat in the investment casting mould. A comparison system was also studied with a fraction of the rare earth oxide Y₂O₃ adding into the filler to increase the inertness. The stability of the MgAl₂O₄/Al₂O₃ and MgAl₂O₄/Y₂O₃/Al₂O₃ slurries was assessed by tests, including pH, viscosity, zeta-potential and plate weight measurement, and mould properties such as friability were also measured. The interaction between the face coat and titanium alloy was studied by both a flash re-melting technique and a centrifugal investment casting method. The interaction products between metal and mould were characterized using x-ray diffraction (XRD), scanning electron microscopy (SEM) and Energy Dispersive X-Ray Spectroscopy (EDS). The depth of the oxygen hardened layer was evaluated by micro hardness measurement. Results reveal that introducing a fraction of Y₂O₃ into magnesia spinel can significantly increase the slurry life and reduce the thickness of hardened layer during centrifugal casting.

Keywords: titanium alloy, mould, MgAl₂O₄, Y₂O₃, interaction, investment casting

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Authors: Parminder Kaur Heer, Alexei Lapkin

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Due to global challenges of increased competition and demand for more sustainable products/processes, there is a rising pressure on the industry to develop innovative processes. Through Process Intensification (PI) the existing and new processes may be able to attain higher efficiency. However, very few PI options are generally considered. This is because processes are typically analysed at a unit operation level, thus limiting the search space for potential process options. PI performed at more detailed levels of a process can increase the size of the search space. The different levels at which PI can be achieved is unit operations, functional and phenomena level. Physical/chemical phenomena form the lowest level of aggregation and thus, are expected to give the highest impact because all the intensification options can be described by their enhancement. The objective of the current work is thus, generation of numerous process alternatives based on phenomena, and development of their corresponding computer aided models. The methodology comprises: a) automated generation of process options, and b) automated generation of process models. The process under investigation is disintegrated into functions viz. reaction, separation etc., and these functions are further broken down into the phenomena required to perform them. E.g., separation may be performed via vapour-liquid or liquid-liquid equilibrium. A list of phenomena for the process is formed and new phenomena, which can overcome the difficulties/drawbacks of the current process or can enhance the effectiveness of the process, are added to the list. For instance, catalyst separation issue can be handled by using solid catalysts; the corresponding phenomena are identified and added. The phenomena are then combined to generate all possible combinations. However, not all combinations make sense and, hence, screening is carried out to discard the combinations that are meaningless. For example, phase change phenomena need the co-presence of the energy transfer phenomena. Feasible combinations of phenomena are then assigned to the functions they execute. A combination may accomplish a single or multiple functions, i.e. it might perform reaction or reaction with separation. The combinations are then allotted to the functions needed for the process. This creates a series of options for carrying out each function. Combination of these options for different functions in the process leads to the generation of superstructure of process options. These process options, which are formed by a list of phenomena for each function, are passed to the model generation algorithm in the form of binaries (1, 0). The algorithm gathers the active phenomena and couples them to generate the model. A series of models is generated for the functions, which are combined to get the process model. The most promising process options are then chosen subjected to a performance criterion, for example purity of product, or via a multi-objective Pareto optimisation. The methodology was applied to a two-step process and the best route was determined based on the higher product yield. The current methodology can identify, produce and evaluate process intensification options from which the optimal process can be determined. It can be applied to any chemical/biochemical process because of its generic nature.

Keywords: Phenomena, Process intensification, Process models , Process options

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Authors: Salah Alrabeei, Mohammad Yousuf

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The goal of option pricing theory is to help the investors to manage their money, enhance returns and control their financial future by theoretically valuing their options. Modeling option pricing by Black-School models with jumps guarantees to consider the market movement. However, only numerical methods can solve this model. Furthermore, not all the numerical methods are efficient to solve these models because they have nonsmoothing payoffs or discontinuous derivatives at the exercise price. In this paper, the exponential time differencing (ETD) method is applied for solving partial integrodifferential equations arising in pricing European options under Merton’s and Kou’s jump-diffusion models. Fast Fourier Transform (FFT) algorithm is used as a matrix-vector multiplication solver, which reduces the complexity from O(M2) into O(M logM). A partial fraction form of Pad`e schemes is used to overcome the complexity of inverting polynomial of matrices. These two tools guarantee to get efficient and accurate numerical solutions. We construct a parallel and easy to implement a version of the numerical scheme. Numerical experiments are given to show how fast and accurate is our scheme.

Keywords: Integral differential equations, , L-stable methods, pricing European options, Jump–diffusion model

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Authors: Mekonen Hailu, Gashaw Tesfaye, Adamneh Dagne, Hiwot Teshome

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Lake Hawassa is one of the most important lakes for Ethiopian fishery. It serves as a source of food and nutrition, income and livelihood for many inhabitants. However, the fishery in Lake Hawassa shows a declining trend, especially for the most valuable species, such as the Nile tilapia (Oreochromis niloticus L.), indicating that the existing management systems are either not fully enforced or inadequate. The aim of this study was therefore to develop management policy options for the sustainable utilization and management of fishery resources in Lake Hawassa. A blend of primary and secondary data was used for the study. Primary data were collected using Participatory Rural Appraisal (PRA) techniques such as focus group discussions with members of fishing co-operatives, co-operative leaders and key informant discussion to understand the current state of the fisheries resources. Then literatures were reviewed to obtain secondary data and develop alternative management policy options. It has been realized that Lake Hawassa is not very species-rich in terms of fish diversity. It contains only six species belonging to four families, of which only three are commercially important, including the Nile tilapia (90 % of catches), the African catfish Clarias gariepinus B. (7 % of catches) and the African large barb Labeobarbus intermedius R. (only 3 % of catches). The production has been declining since 2007. The top six challenges that could be responsible for this decline, identified by about two-thirds of respondents and supported by the literature review, are directly linked to fisheries and fisheries management, with overfishing, irregular monitoring, control, and surveillance (MCS) system and the lack of a fishing licensing system ranking first, second and third respectively. It is, therefore, important to address these and other problems identified in the study. Of the management options analyzed, we suggest adapting the management approach to sustain the fishery in Lake Hawaasa and its socio-economic benefits. We also present important conditions for successfully implementing co-management in this and other lakes in Ethiopia.

Keywords: comanagement, community-based management, fishery, overfishing, participatory approach, top-down management

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Authors: Saghar Heidari

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In this paper, we study the valuation problem of European continuous-installment options under Markov-modulated models with a partial differential equation approach. Due to the opportunity for continuing or stopping to pay installments, the valuation problem under regime-switching models can be formulated as coupled partial differential equations (CPDE) with free boundary features. To value the installment options, we express the truncated CPDE as a linear complementarity problem (LCP), then a finite element method is proposed to solve the resulted variational inequality. Under some appropriate assumptions, we establish the stability of the method and illustrate some numerical results to examine the rate of convergence and accuracy of the proposed method for the pricing problem under the regime-switching model.

Keywords: continuous-installment option, European option, regime-switching model, finite element method

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Authors: Mohammad Saber Rohi, Saghar Heidari

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In this paper, we studied the pricing problem of American options under a regime-switching model with the possibility of a non-optimal exercise policy (early or late exercise time) which is called an irrational strategy. For this, we consider a Markovmodulated model for the dynamic of the underlying asset as an alternative model to the classical Balck-Scholes-Merton model (BSM) and an intensity-based model for the irrational strategy, to provide more realistic results for American option prices under the irrational behavior in real financial markets. Applying a partial differential equation (PDE) approach, the pricing problem of American options under regime-switching models can be formulated as coupled PDEs. To solve the resulting systems of PDEs in this model, we apply a finite element method as the numerical solving procedure to the resulting variational inequality. Under some appropriate assumptions, we establish the stability of the method and compare its accuracy to some recent works to illustrate the suitability of the proposed model and the accuracy of the applied numerical method for the pricing problem of American options under the regime-switching model with irrational behaviors.

Keywords: irrational exercise strategy, rationality parameter, regime-switching model, American option, finite element method, variational inequality

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Authors: M. Poveda, S. Lozecznik, J. Oleszkiewicz, Q. Yuan

Abstract:

The goal of this experiment is to evaluate the effectiveness of different leachate pre-treatment options in terms of COD and ammonia removal. This research focused on the evaluation of physical-chemical methods for pre-treatment of leachate that would be effective and rapid in order to satisfy the requirements of the sewer discharge by-laws. The four pre-treatment options evaluated were: air stripping, chemical coagulation, electro-coagulation and advanced oxidation with sodium ferrate. Chemical coagulation reported the best COD removal rate at 43%, compared to 18 % for both air stripping and electro-coagulation, and 20 % for oxidation with sodium ferrate. On the other hand, air stripping was far superior to the other treatment options in terms of ammonia removal with 86 %. Oxidation with sodium ferrate reached only 16 %, while chemical coagulation and electro-coagulation removed less than 10 %. When combined, air stripping and chemical coagulation removed up to 50 % COD and 85 % ammonia.

Keywords: leachate pretreatment, air stripping, chemical coagulation, electro-coagulation, oxidation

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Authors: R. Knizek, D. Karhankova

Abstract:

The production of nanofibers and the machinery for their production is a current issue. The pioneer, in the industrial production of nanofibers, is the machinery with the sales descriptions Nanospider^TM from the company Elmarco, which came into being in 2008. Most of the production facilities, like Nanospider^TM, use electrospinning. There are also other methods of industrial production of nanofibers, such as the centrifugal spinning process, which is used by FibeRio Technology Corporation. However, each method and machine has its advantages, but also disadvantages and that is the reason why a new machine called as Nanomachine, which eliminates the disadvantages of other production facilities producing nanofibers, has been developed.

Keywords: nanomachine, nanospider, spinning slat, electrospinning

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Authors: Md. Royhanur Islam, Thomas Cansse, Md. Sahidul Islam, Atiqur Rahman Sunny

Abstract:

The geographical location of Bangladesh makes it one of the most vulnerable countries to climate change. Climate-induced phenomena mainly affect the south-central region of Bangladesh (Laxmipur district) where they have begun to occur more frequently. The aim of the study was to identify the hydro-climatic factors that lead to weather-related disasters in the coastal areas and analyse the consequences of these factors on coastal livelihoods, with possible adaptation options using participatory rural appraisal (PRA) tools. The present study showed several disasters such as land erosion, depressions and cyclones, coastal flooding, storm surge, and precipitation. The frequency of these disasters is of a noticeable rate. Surveys have also discovered that land erosion is ongoing. Tidal water is being introduced directly into the mainland, and as a result of the salt intrusion, production capacity is declining. The coastal belt is an important area for fishing activities, but due to changed fishing times and a lack of Alternative Income Generating Activities (AIGAs), people have been forced to search for alternative livelihood options by taking both short-term and long-term adaptation options. Therefore, in order to increase awareness and minimize the losses, vulnerable communities must be fully incorporated into disaster response strategies. The government as well as national and international donor organizations should come forward and resolve the present situation of these vulnerable groups since otherwise, they will have to endure endless and miserable suffering due to the effects of climate change ahead in their lives.

Keywords: adaptation, community, fishery development, livelihood

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Authors: Seongcheol Kwon, Jeongmin Kim, Kwang Ryel Ryu

Abstract:

We assume an IoT-based smart-home environment where the on-off status of each of the electrical appliances including the room lights can be recognized in a real time by monitoring and analyzing the smart meter data. At any moment in such an environment, we can recognize what the household or the user is doing by referring to the status data of the appliances. In this paper, we focus on a smart-home service that is to activate a robot vacuum cleaner at right time by recognizing the user situation, which requires a situation-aware model that can distinguish the situations that allow vacuum cleaning (Yes) from those that do not (No). We learn as our candidate models a few classifiers such as naïve Bayes, decision tree, and logistic regression that can map the appliance-status data into Yes and No situations. Our training and test data are obtained from simulations of user behaviors, in which a sequence of user situations such as cooking, eating, dish washing, and so on is generated with the status of the relevant appliances changed in accordance with the situation changes. During the simulation, both the situation transition and the resulting appliance status are determined stochastically. To compare the performances of the aforementioned classifiers we obtain their learning curves for different types of users through simulations. The result of our empirical study reveals that naïve Bayes achieves a slightly better classification accuracy than the other compared classifiers.

Keywords: situation-awareness, smart home, IoT, machine learning, classifier

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Authors: Wajih Abbassi, Zouhaier Ben Khelifa

Abstract:

The present research points towards the empirical validation of three options valuation models, the ad-hoc Black-Scholes model as proposed by Berkowitz (2001), the constant elasticity of variance model of Cox and Ross (1976) and the Kou jump-diffusion model (2002). Our empirical analysis has been conducted on a sample of 26,974 options written on three indexes, the S&P 500, Nasdaq 100 and the Russell 2000 that were negotiated during the year 2007 just before the sub-prime crisis. We start by presenting the theoretical foundations of the models of interest. Then we use the technique of trust-region-reflective algorithm to estimate the structural parameters of these models from cross-section of option prices. The empirical analysis shows the superiority of the Kou jump-diffusion model. This superiority arises from the ability of this model to portray the behavior of market participants and to be closest to the true distribution that characterizes the evolution of these indices. Indeed the double-exponential distribution covers three interesting properties that are: the leptokurtic feature, the memory less property and the psychological aspect of market participants. Numerous empirical studies have shown that markets tend to have both overreaction and under reaction over good and bad news respectively. Despite of these advantages there are not many empirical studies based on this model partly because probability distribution and option valuation formula are rather complicated. This paper is the first to have used the technique of nonlinear curve-fitting through the trust-region-reflective algorithm and cross-section options to estimate the structural parameters of the Kou jump-diffusion model.

Keywords: jump-diffusion process, Kou model, Leptokurtic feature, trust-region-reflective algorithm, US index options

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Authors: Debabrata Biswas

Abstract:

The current trend in the development of antibiotic resistance by multiple bacterial pathogens has resulted in a troubling loss of effective antibiotic options for human. The emergence of multi-drug-resistant pathogens has necessitated higher dosages and combinations of multiple antibiotics, further exacerbating the problem of antibiotic resistance. Zoonotic bacterial pathogens, such as Salmonella, Campylobacter, Shiga toxin-producing Escherichia coli (such as enterohaemorrhagic E. coli or EHEC), and Listeria are the most common and predominant foodborne enteric infectious agents. It was observed that these pathogens gained/developed their ability to survive in the presence of antibiotics either in farm animal gut or farm environment and researchers believe that therapeutic and sub-therapeutic antibiotic use in farm animal production might play an important role in it. The mechanism of action of antimicrobial components used in farm animal production in genomic interplay in the gut and farm environment, has not been fully characterized. Even the risk of promoting the exchange of mobile genetic elements between microbes specifically pathogens needs to be evaluated in depth, to ensure sustainable farm animal production, safety of our food and to mitigate/limit the enteric infection with multiple antibiotic resistant bacterial pathogens. Due to the consumer’s demand and considering the current emerging situation, many countries are in process to withdraw antibiotic use in farm animal production. Before withdrawing use of the sub-therapeutic antibiotic or restricting the use of therapeutic antibiotics in farm animal production, it is essential to find alternative natural antimicrobials for promoting the growth of farm animal and/or treating animal diseases. Further, it is also necessary to consider whether that compound(s) has the potential to trigger the acquisition or loss of genetic materials in zoonotic and any other bacterial pathogens. Development of alternative therapeutic and sub-therapeutic antimicrobials for farm animal production and food processing and preservation and their effective implementation for sustainable strategies for farm animal production as well as the possible risk for horizontal gene transfer in major enteric pathogens will be focus in the study.

Keywords: food safety, natural antimicrobial, sustainable farming, antibiotic resistance

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