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!

/////////////////

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

////////////////

Below is a simple Abstract

//////////////////////////////////////////////

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

///////////////////////////////

Boomark To:

I still cant believe I have just a week to exit LSE …… Let the count down begin!

Boomark To: