Integrated production and renewable energy generation in the presence of hydrogen energy storage

In this paper, we propose an inventory model that considers dual sources with energy storage to address the energy efficiency of an effective make‐to‐stock production facility that has access to grid electricity and a source of renewable energy, along with energy‐storage capabilities. Such systems are being implemented in practice; however, the literature on inventory models does not offer solutions for extracting value from the management of such a complex energy mix coupled to energy‐storage technologies. We explore a periodic review production/inventory model in which hydrogen functions as an energy‐storage mechanism. We identify the structural properties of the objective function and obtain managerial insights through a complementarity analysis that is aimed at characterizing optimal energy‐efficiency policies.