Hi, can someone help me answer the following problem below w/ the excel solution
ID: 470836 • Letter: H
Question
Hi, can someone help me answer the following problem below w/ the excel solution?
Thanks!
Decision Models: Capacity Planning for an Electric Utility (2-Stage Stochastic Optimization w/ Recourse)
In this era of deregulation, power companies have many complex decisions to make. For example, should a power company sell some of their power plants and buy power from other producers? The problem with this is that on hot days when power usage is high it can be very expensive to purchase power. If we choose to never purchase power from other producers, however, we incur high daily fixed costs for operating our plants. Consider the following example.
Power Company PSI currently operates four power plants. Figure 1 gives daily capacity (in 000
Explanation / Answer
It should keep the third plant open because, by going through the two tables, only third plant is effective in all three types of days.
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