Explain how the company might reduce its costs

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Reference no: EM131440067

Question: Young Energy operates a power plant that includes a coal-fired boiler to produce steam to drive a generator. The company can purchase different types of coals and blend them to meet the requirements for burning in the boiler. The following table shows the characteristics of the different types of coals:

Type	BTU/lb	% Ash	% Moisture	Cost($/lb)
Type	BTU/lb
A	11.500	13%	10%	$2.49
B	11.800	10%	6%	$3.04
C	12,200	12%	8%	$2.99
0	12,100	12%	8%	$2.61

The required BTU/pound must be at least 11,900. In addition, the ash content can be at most 12.2% and the moisture content, at most 9.4%. Develop and solve a linear optimization model to find the best coal blend for Young Energy. Explain how the company might reduce its costs by changing the blending restrictions.

Reference no: EM131440067

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