Financial risk analysis in the synthesis and design of processing networks: Balancing risk and return

Alberto Quaglia; Gürkan Sin; Rafiqul Gani

Financial risk analysis in the synthesis and design of processing networks: Balancing risk and return

Alberto Quaglia, Gürkan Sin, Rafiqul Gani

Department of Chemical and Biochemical Engineering

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

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Abstract

The construction of a processing network is a corporate investment, that processing companies make with the goal of creating the conditions to increase their value. In a previous work, a computer-aided framework supporting the design of processing network under uncertainty has been presented (Quaglia et al. 2013). In this contribution, we study the implications of corporate finance concepts such as funding strategies and cost of the capital on the selection of an optimal processing network. To this end, the process synthesis framework is extended to include various project funding and financial risk models. Through the solution of a small benchmark problem, the impact of financial factors on the optimal network configuration is presented and discussed.

Original language	English
Title of host publication	Proceedings of the 24 th European Symposium on Computer Aided Process Engineering – ESCAPE 24
Editors	JJ Klemeš, P. S. Varbanov, P. Y. Liew
Number of pages	6
Publisher	Elsevier
Publication date	2014
Publication status	Published - 2014
Event	24th European Symposium on Computer Aided Process Engineering - Budapest, Hungary Duration: 15 Jun 2014 → 18 Jun 2014

Conference

Conference	24th European Symposium on Computer Aided Process Engineering
Country/Territory	Hungary
City	Budapest
Period	15/06/2014 → 18/06/2014

Keywords

Synthesis and design of processing network
Capital budgeting
Mixed Integer Non Linear Programming
Financial optimization

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title = "Financial risk analysis in the synthesis and design of processing networks: Balancing risk and return",

abstract = "The construction of a processing network is a corporate investment, that processing companies make with the goal of creating the conditions to increase their value. In a previous work, a computer-aided framework supporting the design of processing network under uncertainty has been presented (Quaglia et al. 2013). In this contribution, we study the implications of corporate finance concepts such as funding strategies and cost of the capital on the selection of an optimal processing network. To this end, the process synthesis framework is extended to include various project funding and financial risk models. Through the solution of a small benchmark problem, the impact of financial factors on the optimal network configuration is presented and discussed.",

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booktitle = "Proceedings of the 24 th European Symposium on Computer Aided Process Engineering – ESCAPE 24",

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address = "United Kingdom",

note = "24th European Symposium on Computer Aided Process Engineering, ESCAPE24 ; Conference date: 15-06-2014 Through 18-06-2014",

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Quaglia, A, Sin, G & Gani, R 2014, Financial risk analysis in the synthesis and design of processing networks: Balancing risk and return. in JJ Klemeš, PS Varbanov & PY Liew (eds), Proceedings of the 24 th European Symposium on Computer Aided Process Engineering – ESCAPE 24 . Elsevier, 24th European Symposium on Computer Aided Process Engineering, Budapest, Hungary, 15/06/2014.

Financial risk analysis in the synthesis and design of processing networks: Balancing risk and return. / Quaglia, Alberto; Sin, Gürkan; Gani, Rafiqul.
Proceedings of the 24 th European Symposium on Computer Aided Process Engineering – ESCAPE 24 . ed. / JJ Klemeš; P. S. Varbanov; P. Y. Liew. Elsevier, 2014.

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

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Financial risk analysis in the synthesis and design of processing networks: Balancing risk and return

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