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Powerco has three electric power plants that supply the needs of four cities Each power plant can supply the following numbers of kilowatt-hours

Powerco has three electric power plants that supply the needs of four cities.† Each power plant can supply the following numbers of kilowatt-hours (kwh) of electricity: plant 1— 35 million; plant 2—50 million; plant 3—40 million (see Table).

Shipping Costs, Supply, and Demand for Powerco

 

 

To

 

 

From

City 1

City 2

City 3

City 4

(million kwh)

Plant 1

$8

$6

$10

$9

35

Plant 2

$9

$12

$13

$7

50

Plant 3

$14

$9

$16

$5

40

Demand

45

20

30

30

(million kwh)

 

 

 

 

The peak power demands in these cities, which occur at the same time (2 P.M.), are as follows (in kwh): city 1—45 million; city 2—20 million; city 3—30 million; city 4—30 million. The costs of sending 1 million kwh of electricity from plant to city depend on the distance the electricity must travel

1. Determine the range of values of c14 for which the current basis remains optimal.

2. Determine the range of values of c34 for which the current basis remains optimal.

3. If s2 and d3 are both increased by 3, what is the new optimal solution?

4. If s3 and d3 are both decreased by 2, what is the new optimal solution?

Aug 10 2020 View more View Less

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