Buckeye Power &Amp; Light Company

Abstract:     
This case describes the coal-procurement process of a small electric utility. The manager of the production-fuel department must decide how much coal to purchase from each vendor and how to allocate the purchased coal among the utility's three coal-burning plants. The situation can be modeled and solved as a linear program. Sensitivity analysis can be used to help formulate a strategy for negotiating with the vendors and to address other special issues.

Number of Pages in PDF File: 7

Keywords: decision theory, linear programming, negotiation, resource allocation, sensitivity analysis

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