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Problem 5: Fairfax Furnaces, Inc. operate a power plant that includes a coal fired boiler to produce steam to drive a generator. They are aware
Problem 5: Fairfax Furnaces, Inc. operate a power plant that includes a coal fired boiler to produce steam to drive a generator. They are aware that they need to replace the old boiler due to emission issues. The company can purchase four different types of coal from West Virginia and blend them to meet the requirements for burning in the boiler. The following table shows the characteristics of the different types of coal: Type of Coal Type Anthracite Type Bituminous Type Sub-bituminous Type Lignite BTU/b 11,500 11,800 12,200 12,100 % Ash 13 10 12 12 % Moisture 10 8 8 8 Cost S/Ib $2.49 $3.04 $2.99 $2.61 The required BTU/pound must be at least 11,900. In addition, the ash content can be at most 12.2% and the moisture content can be at most 9.4%. Develop an optimization model to minimize cost which will be in cost per pound. Please do not change the percentage values in the matrix to decimals. The total percentage of the mix, must equal 1. This is a hard problem, please take your time!
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