Early_Bird_Case_Study-03_16_2012.doc - Early Bird Case Study by kunalv3 | studymode.com What is the basis for taking Buy or Sell decisions by Southern

Early_Bird_Case_Study-03_16_2012.doc - Early Bird Case...

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Early Bird Case Study by kunalv3 | studymode.com What is the basis for taking Buy or Sell decisions by Southern Company? Southern Company is the nation’s third largest Electric Utility firm. The company uses a computerized and automated method to generate and dispatch electricity to its customers. This automated Load dispatching method is also known as the “Early Bird” system. The “Early Bird” continuously calculates the marginal cost of delivering additional Kilowatts of electricity to its customers anywhere in the company service area. Marginal cost can be understood as the change in total cost that arises when the quantity produced (power in this case) changes by one unit. Sothern Company has several power generating units. Each unit is tested to see how much fuel labor and other variable inputs are required to generate electricity. In this way a continuous production function can be created. This information is then fed to the

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