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 following 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:                                      To From                       Hamilton Butler Clermont Southern Gas            10           20          15 Northwest Gas          12           15          18 a. Develop a network representation of this problem.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14A: The Practice Of Revenue Management
Section: Chapter Questions
Problem 3E
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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 following 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:

                                     To

From                       Hamilton Butler Clermont

Southern Gas            10           20          15

Northwest Gas          12           15          18

a. Develop a network representation of this problem.

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