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The Sun Wynn Company is a utility company and the major producer of electricity for the region. The company's coal fired power plants burn (combust)
The Sun Wynn Company is a utility company and the major producer of electricity for the region. The company's coal fired power plants burn (combust) high and low sulfur coal. In their annual planning, the Sun Wynn Utility Company needs to determine the amounts of high and low sulfur coal they will need to meet their annual demand 3000 Mega Watts (MW) and to meet Federal environmental emissions standards for sulfur oxides (SOx) and particulates (TSP). The company needs this information to lock in contracts with coal supply companies at current prices. Table 7.3 shows the energy content of the two types of coal they need to purchase, as well as the emissions of each pollutant for each type of coal, and the amount of each pollutant they are allowed to emit. The company works in units of millions of tons per year. The price of low sulfur coal is $100,000,000 per million tons, and for high sulfur coal the price is $40,000,000 per million tons. Sun Wynn wants to determine the optimal fuel mix to purchase such that they will satisfy the EPA emission requirements, listed in Table 7.3, and meet the demand while minimize their costs
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