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Tepper School of Business

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Merchant Operations of Energy Trading Networks

Biography

Tepper School of Business
Professor of Operations Management Head, Ph.D. Program

PHONE

412-268-9596

OFFICE

POS - Posner Hall - Room 358

AREA OF EXPERTISE

Operations Management

EDUCATION

University of Houston - Ph D - 1998
University of Houston - MS - 1993
Universitá di Venezia, Cá Foscari - Laurea - 1992

PUBLICATIONS

  • Relationship between Least Squares Monte Carlo and Approximate Linear Programming

(author(s): Selvaprabu Nadarajah, Nicola Secomandi) Operations Research Letters 45(5), 2017; 409-414

  • Merchant Energy Trading in a Network

(author(s): Selvaprabu Nadarajah, Nicola Secomandi) Operations Research

  • Approximations for High Dimensional Commodity and Energy Merchant Operations Models

Foundations and Trends in Technology, Information and Operations Management 11(1-2), 2017; 144-164

  • An Improved Basket of Spread Options Heuristic for Merchant Energy Storage

IISE Transactions – Focused Issue on Operations Engineering and Analytics, Special Issue on Energy Systems Modeling and Analytics

  • An Analytical Throughput Approximation for Closed Fork/Join Networks

(author(s): Erkut Sonmez, Alan Scheller-Wolf, Nicola Secomandi) INFORMS Journal of Computing 29(2), 2017; 251-267

  • Real Option Management of Hydrocarbon Cracking Operations
    Real Options in Energy and Commodity Markets

(author(s): Selva Nadarajah, Nicola Secomandi, Gary Sowers, John Wassick) World Scientific-Now Publishers Series in Business, 2017; 173-202

  • Real Options in Energy and Commodity Markets
    Edited volume

World Scientific-Now Publishers Series in Business, 2017

  • Comparison of Least Squares Monte Carlo Methods with Applications to Energy Real Options

(author(s): Selvaprabu Nadarajah, François Margot, Nicola Secomandi) European Journal of Operational Research 256(1), 2017; 196-204

  • A Tutorial on Portfolio-Based Control Algorithms for Merchant Energy Trading Operations

Journal of Commodity Markets 4(1), 2016; 1-13

  • Energy Real Options: Valuation and Operations
    Managing Energy Price Risk, Risk Books, 4-th Edition, V. Kamiski (ed.), 449-477.

(author(s): Nicola Secomandi, Duane Seppi) 2016

  • Electricity Trading and Negative Prices: Storage vs. Disposal

(author(s): Yangfang Zhou, Alan Scheller-Wolf, Nicola Secomandi, Stephen Smith) Management Science 62(3), 2016; 880-898

  • Relaxations of Approximate Linear Programs for the Real Option Management of Commodity Storage

(author(s): Selvaprabu Nadarajah, François Margot, Nicola Secomandi) Management Science 61(12), 2015; 3054-3076

  • Merchant Commodity Storage Practice Revisited

Operations Research 63(5), 2015; 1131-1143

  • Merchant Commodity Storage and Term-Structure Model Error

(author(s): Nicola Secomandi, Guoming Lai, François Margot, Alan Scheller-Wolf, Duane Seppi) Manufacturing & Service Operations Management 17(3), 2015; 302–320

  • Real Options and Merchant Operations of Energy and Other Commodities

(author(s): Nicola Secomandi, Duane Seppi) Foundations and Trends in Technology, Information and Operations Management 6(3-4), 2014; 161-331

  • Optimal Energy Procurement in Spot and Forward Markets

(author(s): Nicola Secomandi, Sunder Kekre) Manufacturing & Service Operations Management 16(2), 2014; 270-282

  • Preface to the Special Issue on Energy Modeling

(author(s): Jerome Apt, Nicola Secomandi) Socio-Economic Planning Sciences 47(2), 2013; 75

  • Strategic Analysis of Technology and Capacity Investment in the Liquefied Natural Gas Industry

(author(s): Erkut Sonmez, Sunder Kekre, Alan Scheller-Wolf, Nicola Secomandi) European Journal of Operational Research 226(1), 2013; 100-114

  • An Opportunity Cost View of Basestock Optimality for the Warehouse Problem
    Handbook of Integrated Risk Management in Global Supply Chains

John Wiley & Sons, Inc., 2012; 447-461

  • A Stochastic Dynamic Programming Approach for Integrating Supply Chain Network Design and New Product Diffusion

(author(s): Giulia Dello Stritto, Diego Falsini, Max Schiraldi, Nicola Secomandi) Proceedings of the 4th P&OM World Conference, 2012

  • A Computational Approach to the Real Option Management of Network Contracts for Natural Gas Pipeline Transport Capacity

(author(s): Nicola Secomandi, Mulan Wang) Manufacturing & Service Operations Management 14(3), 2012; 441-454

  • Revenue Management with Bargaining

(author(s): Atul Bhandari, Nicola Secomandi) Operations Research 59(2), 2011; 498-506

  • Valuation of Storage at a Liquefied Natural Gas Terminal

(author(s): Guoming Lai, Mulan Wang, Sunder Kekre, Alan Scheller-Wolf, Nicola Secomandi) Operations Research 59(3), 2011; 602-616

  • Interaction between Technology and Extraction Scaling Real Options in Natural Gas Production

(author(s): Paul Enders, Alan Scheller-Wolf, Nicola Secomandi) IIE Transactions 42(9), 2010; 643-655

  • On the Pricing of Natural Gas Pipeline Capacity

Manufacturing & Service Operations Management 12(3), 2010; 393-408

  • An Approximate Dynamic Programming Approach to Benchmark Practice-Based Heuristics for Natural Gas Storage Valuation

(author(s): Guoming Lai, François Margot, Nicola Secomandi) Operations Research 58(3), 2010; 564-582

  • Optimal Commodity Trading with a Capacitated Storage Asset

Management Science 56(3), 2010; 449-467

  • Teaching Demand Management and Price Optimization in the MBA Program at the Carnegie Mellon University Tepper School of Business

INFORMS Transactions on Education 9(2), 2009; 99-108

  • OM Practice - Balancing Risk And Efficiency at a Major Commercial Bank

(author(s): Sunder Kekre, Nicola Secomandi, Erkut Sonmez, Kenneth West) Manufacturing & Service Operations Management 11(1), 2009; 160-173

  • Reoptimization Approaches for the Vehicle-Routing Problem with Stochastic Demands

(author(s): Nicola Secomandi, François Margot) Operations Research 57(1), 2009; 214-230

  • An Analysis of the Control-Algorithm Re-solving Issue in Inventory and Revenue Management

Manufacturing & Service Operations Management 10(3), 2008; 468-483

  • Analysis of a Rollout Approach to Sequencing Problems with Stochastic Routing Applications

Journal of Heuristics 9(4), 2003; 321-352

  • From Revenue Management Concepts to Software Systems

(author(s): Nicola Secomandi, Kirk Abbott, Tankut Atan, E. Boyd) Interfaces 32(2), 2002; 1-11

  • A Rollout Policy for the Vehicle Routing Problem with Stochastic Demands

Operations Research 49(5), 2001; 796-802

  • Comparing Neuro-Dynamic Programming Algorithms for the Vehicle Routing Problem with Stochastic Demands

Computers and Operations Research 27(11/12), 2000; 1201-1225

WORKING PAPERS

  • Faster Rollout Search for the Vehicle Routing Problem with Stochastic Demands and Restocking

(author(s): Luca Bertazzi, Nicola Secomandi)

  • Managing Wind-Based Electricity Generation in the Presence of Storage and Transmission Capacity

(author(s): Yangfang Zhou, Alan Scheller-Wolf, Nicola Secomandi, Stephen Smith)

  • Optimal Managerial Compensation and Financial Hedging in Commodity Procurement

(author(s): Masha Shunko, Laurens Debo, Lin Nan, Nicola Secomandi) 2011

  • Operations Management and Business Pricing

(author(s): Nicola Secomandi, Jeffrey Johnson) 2007

AWARDS AND HONORS

  • M&SOM - 2015 M&SOM Meritorious Service Award (2016)
  • M&SOM - 2014 M&SOM Meritorious Service Award (2015)
  • Chinese Scholars Association in Management Science and Engineering, CSAMSE - Honorable Mention, Best Paper Award of the 2014 Annual Conference of the Chinese Scholars Association in Management Science and Engineering (2014)
  • Operations Research - 2012 Operations Research Meritorious Service Award (2013)
  • M&SOM - 2012 M&SOM Meritorious Service Award (2013)
  • INFORMS Energy, Natural Resources, and the Environment Section - Winner, Best Publication Award in Energy, INFORMS Energy, Natural Resources, and the Environment Section (2012)
  • Faculty Giving Chair (2010)
  • Xerox Junior Research Chair (2008)
  • BP Junior Research Chair (2004)
  • INFORMS Junior Faculty Interest Group - Finalist, INFORMS Junior Faculty Interest Group Best Paper Award (2004)
  • INFORMS Transportation Science Section - Honorable Mention, INFORMS Transportation Science Section Dissertation Prize (1999)

UNIVERSITY SERVICE

  • Head, PhD Program (2017 - )
  • Faculty Advisory Committee, Scott Institute for Energy Innovation, Committee Member (2017 - )
  • Policy Committee, Committee Member (2016 - )
  • Faculty Affiliate, Carnegie Mellon Scott Institute for Energy Innovation (2016 - )
  • Enterprise-wide Optimization, Chemical Engineering, Committee Member (2009 - )
  • Carnegie Mellon Scott Institute for Energy Innovation, Grant Proposal Reviewer, Internal (2017 - 2017)
  • PhD Committee, Committee Member (2011 - 2017)
  • Master of Science in Business Analytics Curriculum Design, Committee Member (2016 - 2017)
  • Cooper Award, Committee Member (2017 - 2017)
  • Edward R. Mosier Scholarship Award, Committee Member (2017 - 2017)
  • Dean Evaluation Committee, Committee Member (2016 - 2016)
  • Edward R. Mosier Scholarship Award, Committee Member (2016 - 2016)
  • Lave-Weil Prize, Committee Member (2016 - 2016)
  • OM Faculty Recruiting, Committee Chair (2015 - 2016)
  • CMU Wilton E. Scott Energy Institute, Committee Member, Internal Advisory Committee (2012 - 2015)
  • Edward R. Mosier Scholarship Award, Committee Member (2015 - 2015)
  • OM Faculty Recruiting, Committee Chair (2014 - 2015)
  • MBA Curriculum Change Assessment Committee, Committee Member (2014 - 2015)
  • Edward R. Mosier Scholarship Award, Committee Member (2014 - 2014)
  • Thompson Award, Committee Member (2013 - 2013)
  • Edward R. Mosier Scholarship, Committee Member (2012 - 2012)

PUBLIC SERVICE

  • Istituto Istruzione Superiore Leopardi-Majorana, Guest Speaker, Lecture on Energy Real Option Valuation

CONSULTING

  • Cheniere Energy (January 2009 -)
  • Cinergy (January 2009 -)
  • Deloitte & Touche (January 2009 -)
  • Equitable Gas (January 2009 -)
  • GE Commercial Finance (January 2009 -)
  • Georgia-Pacific RPC (January 2009 -)
  • Caterpillar (January 2002 -)
  • EnWorkz (January 2002 -)
  • Mellon Bank (January 2002 -)

PROFESSIONAL ACTIVITIES

  • Associate Editor, Management Science (January 2018 -)
  • Senior Editor, Production and Operations Management, Special Issue on Innovation and Sustainability (November 2017 -)
  • Associate Editor, IISE Transactions (July 2017 -)
  • Board Member, Commodity and Energy Markets Association (2017 -)
  • Member, Commodity and Energy Markets Association (2017 -)
  • Associate Editor, Manufacturing & Service Operations Management (January 2017 -)
  • Associate Editor, Operations Research (January 2012 -)
  • Member, SIAM (2011 -)
  • Senior Editor, Production & Operations Management (January 2010 -)
  • Member, POMS (2008 -)
  • Associate Editor, INFORMS Journal on Computing (January 2004 -)
  • Member, INFORMS (1995 -)
  • Program Committee Member, Commodity and Energy Markets Annual Meeting 2018 (December 2017 - April 2018)
  • Editor, Applied Mathematical Finance, Special Issue on Methods and Models for Energy and Commodity Markets (October 2017 - November 2017)
  • Book Editor, World Scientific-Now Publishers Series in Business, Real Options in Energy and Commodity Markets (December 2015 - November 2016)
  • Committee Member, INFORMS MSOM Society, iFORM SIG Best Paper Award (June 2016 - September 2016)
  • Conference-Related, Interface of Finance, Operations, and Risk Management (iFORM) MSOM Special Interest Group Conference, Chair of Organizing Committee (January 2015 - June 2015)
  • Associate Editor, M&SOM, Special Issue on Practice-Focused Research (March 2014 - March 2015)
  • Ad Hoc Reviewer, National Academy of Sciences (May 2014 - December 2014)
  • Associate Editor, Manufacturing & Service Operations Management (January 2011 - December 2014)
  • Committee Chair, INFORMS, Energy, Natural Resources & Environment Section, 2014 Young Researcher Prize (February 2014 - November 2014)
  • Associate Editor, Management Science (January 2012 - June 2014)
  • Journal Editor, Socio-Economic Planning Sciences, Special Issue on Energy Modeling (Joint with Jay Apt) (2011 - 2012)
  • Conference-Related, MSOM, 2012 Interface of Finance, Risk Management, and Operations MSOM Special Interest Group Conference (March 2012 - April 2012)
  • Associate Editor, Management Science, Special Issue on the Interfaces between Operations and Finance (January 2007 - December 2011)

COURSES TAUGHT

  • Risk Management (45863) 2017 Mini 3 Section: A
    2015 Mini 1 Section: A, E

  • Real Options (45964) 2016 Mini 1 Section: A, M
    2015 Mini 2 Section: E, M
    2014 Mini 2 Section: E
    2013 Mini 2 Section: E

  • Dynamic Programming (47840) 2016 Mini 2 Section: A

  • Energy Merchant Operations (47769) 2016 Mini 3 Section: A

  • Supply Chain Management (45862) 2015 Mini 3 Section: A, E
    2014 Mini 3 Section: A, E
    2013 Mini 4 Section: A, E

  • Demand Management and Price Optimization (45860) 2014 Mini 1 Section: A
    2013 Mini 1 Section: A
    2013 Mini 5 Section: E
    2012 Mini 1 Section: A, E

  • Real Options (47769) 2013 Mini 3 Section: A

  • Risk Management Project (45979) 2013 Mini 3 Section: A

  • Supply Chain Management (45836) 2012 Mini 4 Section: A, E, M
    2011 Mini 4 Section: A, E
    2010 Mini 4 Section: A, E
    2008 Mini 1 Section: A
    2008 Mini 2 Section: E

  • Demand Management and Price Optimization (45830) 2011 Mini 1 Section: A, E, M
    2010 Mini 2 Section: A, M
    2009 Mini 2 Section: A
    2008 Mini 1 Section: A
    2008 Mini 2 Section: E
    2006 Mini 1 Section: A

  • Production/Operations Management (70371) 2007 Section: A, B

  • Production/Operations Management (large) (70371) 2006 Section: A, B

  • Production/Operations Management I (large) (70371) 2006 Section: A

  • Production Management Project (45837) 2006 Mini 3 Section: A

  • Operations Revenue Management (45830) 2006 Mini 4 Section: A

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