Generating Efficient Alternatives for Development in the Chemical Industry

Dobrowolski, G., Kopytowski, J.A., Lewandowski, A., & Zebrowski, M. (1982). Generating Efficient Alternatives for Development in the Chemical Industry. IIASA Collaborative Paper. IIASA, Laxenburg, Austria: CP-82-054

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Abstract

Industrial development can be seen as the process of changing the production structure by means of investment over the course of time. To control this development to the benefit of society while maintaining the profitability of the industry, decision makers must learn how socioeconomic changes and market conditions affect the static and dynamic properties of the production structure. This paper reports on the progress of collaborative research into the design of tools which could help decision makers to control development in the chemical industry.

The basic approach is to formulate a model of the equilibrium state of the industry or, in the case considered here, of a particular subsector of the industry. The development process is initially described by a static multiobjective optimization problem, from which a dynamic multiobjective optimization problem is then derived. An example illustrating the use of this method for the pesticide-producing sector is given.

The optimization problem and method for controlling industrial development put forward in this paper were worked out as part of the research program on Growth Strategy Optimization Systems (GSOS), sponsored by the Ministry of the Chemical Industry in Poland. This program is actually carried out at the Institute for Control and Systems Engineering (ICSE), part of the Academy of Mining and Metallurgy (AMM) in Cracow.

The multiobjective optimization method for generating efficient alternatives and the related software were developed by the System and Decision Sciences Area at IIASA.

This collaborative research was carried out within the framework of the agreement on scientific cooperation cosigned by IIASA and the AMM in June 1980.

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