It started as a 10-page ambiguous question and it ended up with a compressed 18-page solution in three different parts.
The Question – Gas Marketing (Download Question)
My Solution (Non-Maths Solution)
1. Linear Programming – Model (Download Solution)
2. Stochastic Programming – Model (Download Solution)
3. Integer Programming – Model (Download Solution)
(The Professor’s Official Solution – Download Solution)
Special thanks to Luis and Nyanteh … ur input were TERRIFIC …. kudos!
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The Project
The project is about a gas marketing company with 4 clients who have different preferences in terms of contract definitions.
We are to use maths to crack the code!Integer Programming
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Below is a simple Abstract
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ABSTRACT
A Gas marketing company with four residential customers, three of whom are ready to bear risks of future increases in gas prices is interested in a model that will minimize the amount of money it has to pay for satisfying the demand of their prospective customers.
We build a linear model with AMPL Studio to find the optimal cost in transporting gas to the first three customers and then extend it to a stochastic and integer model to solve some key questions the company seeks to address.
The Linear model gave us a minimal total cost of £6,534,236.828 with a minimal price per MWh to the three customers at £39.64. By adding customer 4 with its expected demand, the minimal price went down to £38.41.
From our integer model, we deduced that it was going to be profitable to the company if it chose at storage in City B
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