Chapter 6: Distribution and Network Models Question 1 (20 points): Tri-County Utilities, Inc., supplies natural gas to c
Posted: Sun Jul 03, 2022 2:01 pm
Question 1 (20 points): Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the follow- ing quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows: From Southern Gas Northwest Gas Hamilton 10 12 To Butler 20 15 Clermont 15 18 a. Develop a network representation of this problem. (3 points) b. Develop a linear programming model that can be used to determine the plan that will minimize total distribution costs. (3 points) C. Solve the linear program formulated in part (a). using the MS Excel Solver. Provide screenshots for each excel sheet: Your model sheet, excel solver screen (I want to see your inputs to solver), answer report, sensitivity analysis (see Appendix A for Excel screenshots). If you will miss to provide the screenshot for MS Excel Solver Solution, you will be graded for zero for the solution part. d. Describe the distribution plan and show the total distribution cost. (3 points) Page 1 of 10
Chapter 6: Distribution and Network Models