4 freight costs are significantly affected by the

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4. Freight costs are significantly affected by the price of the oil. The contract on which Solutions Plus is bidding for two years. Discuss how fluctuation in freight costs might affect the bid Solutions Plus submits.
Prescriptive Analysis - Assignment
Prescriptive Analysis - Assignment
Prescriptive Analysis - Assignment
Prescriptive Analysis - Assignment Duke Energy Case Study Data Given: Purchase contract Minimg Co. Amount Avl. (tons) Cost ($/tons ) BTUs/l b Fixed RAG 350,000 22 13000 Tonnage: Peabody 300,000 26 13300 American 275,000 22 12600 Variable Consol 200,000 32 12250 Tonnage: Cyprus 175,000 35 12000 Addington 200,000 31 12000 Waterloo 180,000 33 11300 Total 1,680,000 Power Demand Generating Unit Amont Required (mWh) Heat Rate (BTU/kWh) Mimai Fort #5 550,000 10,500 Mimai Fort #7 500,000 10,200 Beckjord 650,000 10,100 East Bend 750,000 10,000 Zimmer 1,100,000 10,000 Total 3,550,000
Prescriptive Analysis - Assignment Transportation cost ($/Ton) Add-On cost Mimai Fort #5 Mimai Fort #7 Beckjor d East Bend Zimme r Mimai Fort #5 Mimai Fort #7 Beckjor d East Ben d Zimme r RAG 5 5 4.75 5 4.75 10 10 10 5 6 Peabody 3.75 3.75 3.5 3.75 3.5 10 10 11 6 7 American 3 3 2.75 3 2.75 13 13 15 9 9 Consol 3.25 3.25 2.85 3.25 2.85 10 10 11 7 7 Cyprus 5 5 4.75 5 4.75 10 10 10 5 6 Addington 2.25 2.25 2 2.25 2 5 5 6 4 4 Waterloo 2 2 1.6 2 1.6 11 11 11 7 9 Solution: 1. Coal Allocation Model Objective Function coefficients Demand constrant matrix Mimai Fort #5 Mima i Fort #7 Beckjor d East Bend Zimme r Mimai Fort #5 Mimai Fort #7 Beckjor d East Ben d Zimme r RAG 37 37 36.75 32 32.75 2.47619 2.54902 2.57425 7 2.6 2.6 Peabody 39.75 39.75 40.5 35.7 5 36.5 2.53333 2.60784 3 2.63366 3 2.66 2.66 American 38 38 39.75 34 33.75 2.4 2.47058 8 2.49505 2.52 2.52 Consol 45.25 45.25 45.85 42.2 5 41.85 2.33333 2.40196 1 2.42574 3 2.45 2.45 Cyprus 50 50 49.75 45 45.75 2.28571 2.35294 1 2.37623 8 2.4 2.4 Addingto n 38.25 38.25 39 37.2 5 37 2.28571 2.35294 1 2.37623 8 2.4 2.4 Waterloo 46 46 45.6 42 43.6 2.15238 2.21568 6 2.23762 4 2.26 2.26 Minimization of Coal Cost 53407249.33 Following table shows the quantities of coal to be purchased from each of the mining companies and allocation of these quantities to various generating units: Miami Fort Unit Miami Fort Unit Beckjord Unit 1 East Bend Zimmer Unit 1 Total coal
Prescriptive Analysis - Assignment 5 7 Unit 2 shippe d RAG 0 0 88076.92 261923.0 8 0 35000 0 Peabody 190770.6 8 0 109229.3 2 0 0 30000 0 American 0 0 0 0 275000 27500 0 Consol 0 0 31245.71 0 124816.33 15606 2 Cyprus 0 0 0 0 0 0 Addington 7050 192950 0 0 0 20000 0 Waterloo 0 0 0 0 0 0 Total coal purchased (tons) 197821 192950 228552 261923 399816 Total mWh 550,000. 00 500,000. 00 650,000. 00 750,000. 00 1,100,000. 00 2. Average Cost of coal To calculate this quantity, we first need to calculate BTUs in millions as follows: Demand: a) Miami5 = 550,000 x 10,500 x 1000 = 57.75x1011 BTU b) Miami7 = 500,000 x 10,200 x 1000 = 51x1011 BTU c) Beckjord = 650,000 x 10,100 x 1000 = 65.65x1011 BTU d) East Bend = 750,000 x 10,000 x 1000 = 75x1011 BTU e) Zimmer = 1,100,000 x 10,000 x 1000 = 110x1011 BTU Supply: a) RAG = 350,000 x 13,000/ 0.00045 = 101.1x1011 BTU b) PCS = 300,000 x 13,330/ 0.00045 = 88.86x1011 BTU c) ACS = 275,000 x 12,600/ 0.00045 = 77x1011 BTU d) Consol = 200,000 x 12,250/ 0.00045 = 54.4x1011 BTU e) Cyprus = 175,000 x 12,000/ 0.00045 = 46.6x1011 BTU f) Addington = 200,000 x 12,000/ 0.00045 = 53.3x1011 BTU g) Waterloo = 180,000 x 11,300/ 0.00045 = 45.2x1011 BTU
Prescriptive Analysis - Assignment Miami Fort Unit 5 Miami Fort Unit 7 Beckjord Unit 1 East Bend Unit 2 Zimmer Unit 1 BTU Millions 5,775,000 5,100,000 6,565,000 7,500,000 11,000,000 Cents per million BTU 102.33 125.8 101.56 94.29 101.42 3. Average number of BTU BTU/pound of coal is calculated as follows:

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