a. Develop a network representation of this problem. b. Develop a linear programming model that can be used to determine the plan that will minimize total distribution costs. c. Describe the distribution plan and show the total distribution cost.

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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3.
Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The
company purchases natural gas from two companies: Southern Gas and Northwest Gas.
Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units;
Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the follow-
ing quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units.
Distribution costs for the counties vary, depending upon the location of the suppliers. The
distribution costs per unit (in thousands of dollars) are as follows:
То
From
Hamilton
Butler
Clermont
Southern Gas
10
20
15
Northwest Gas
12
15
18
a. Develop a network representation of this problem.
b. Develop a linear programming model that can be used to determine the plan that will
minimize total distribution costs.
c. Describe the distribution plan and show the total distribution cost.
d. Recent residential and industrial growth in Butler County has the potential for increas-
ing demand by as much as 100 units. Which supplier should Tri-County contract with
to supply the additional capacity?
Transcribed Image Text:3. Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the follow- ing quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows: То From Hamilton Butler Clermont Southern Gas 10 20 15 Northwest Gas 12 15 18 a. Develop a network representation of this problem. b. Develop a linear programming model that can be used to determine the plan that will minimize total distribution costs. c. Describe the distribution plan and show the total distribution cost. d. Recent residential and industrial growth in Butler County has the potential for increas- ing demand by as much as 100 units. Which supplier should Tri-County contract with to supply the additional capacity?
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