The figure that follows shows 5 pipelines under consideration by a natural gas company to move gas
Question:
The figure that follows shows 5 pipelines under consideration by a natural gas company to move gas from its 2 fields to its 2 storage areas.
The numbers on the arcs show the number of miles of line that would have to be constructed at
$100,000 per mile.
The figure also shows that storage facilities are both already connected to the company’s main terminal through existing lines. An estimated 800 million cubic feet must be shipped each year from field 1 to the terminal, and 600 million from field 2. Variable shipping cost is $2000 per million cubic feet on each link of the network, and all links have an annual capacity of 1 billion cubic feet.
The company wants a minimum total annual cost system for the required shipping.
(a) Formulate this problem as a network design ILP.
(b) Use class optimization software to solve you ILP.
Step by Step Answer:
