The state of Missouri has three major power-generating companies (A, B, and C). During the months of
Question:
The state of Missouri has three major power-generating companies (A, B, and C). During the months of peak demand, the Missouri Power Authority authorizes these companies to pool their excess supply and to distribute it to smaller independent power companies that do not have generators large enough to handle the demand. Excess supply is distributed on the basis of cost per kilowatt hour transmitted. The following table shows the demand and supply in millions of kilowatt hours and the cost per kilowatt hour of transmitting electric power to four small companies in cities W, X, Y, and Z:
Find an initial transmission assignment of the excess power supply. Then find the least-cost distributionsystem.
Step by Step Answer:
Quantitative Analysis For Management
ISBN: 162
11th Edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna