Aggie Power Generation supplies electrical power to residential customers for many U>S, cities. Its main power generation plants are located in Los Angeles, Tulsa, and Seattle. The following table shows Aggie Power Generation's major residential markets, the annual demand in each market (in megawatts or MW;s), and the cost to supply electricity to each market from each power generation plant (prices are in $/MW).
Distribution Costs
City Los Angeles Tulsa Seattle Demand (MWs)
Seattle $356.25 $593.75 $59.38 950.00
Portland $356.25 $593.75 $178.13 831.25
San Francisco $178.00 $475.00 $296.88 2375.00
Boise $356.25 $475.00 $296.88 593.75
Reno $237.50 $475.00 $356.25 950.00
Bozeman $415.63 $415.63 $296.88 593.75
Laramie $356.25 $415.63 $356.25 1187.50
Park City $356.25 $356.25 $475.00 712.50
Flagstaff $178.13 $475.00 $593.75 1187.50
Durango $356.25 $296.88 $593.75 1543.75
1. Assume the amount of power that can be supplied by each of the power plants is 20,000 MW. Find the optimal solution of the problem.
2. Assume the amount of power that can be supplied by each of the power plants is 4,000 MW. Find the optimal solution of the problem.