Parametric
Programming Solutions to
Opportunity Values and Reciprocal Costs
| Problem
1 (Table 1) |
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| Opportunity value of water capacity | y1 | = | $0 |
| Opportunity value of steam capacity | y2 | = | $0 |
| Opportunity value of electricity capacity | y3 | = | $0 |
| Opportunity value of demand capacity | y4 | = | $440 - 4.8q per thousand units of paper |
| Reciprocal cost of water | p1 | = | $ 35.46 + 3.210q per thousand gallons of water |
| Reciprocal cost of steam | p2 | = | $117.00 + 2.615q per thousand cubic feet of steam |
| Reciprocal cost of electricity | p3 | = | $ 27.66 + 3.380q per thousand k.w.h. of electricity |
| Problem
2-A (Table 1) |
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| Opportunity value of water capacity | y1 | = | $293.33 - 13.367q per thousand gallons of water |
| Opportunity value of steam capacity | y2 | = | $0 |
| Opportunity value of electricity capacity | y3 | = | $0 |
| Opportunity value of demand capacity | y4 | = | $0 |
| Reciprocal cost of water | p1 | = | $347.51 - 10.995q per thousand gallons of water |
| Reciprocal cost of steam | p2 | = | $273.75 - 4.495q per thousand cubic feet of steam |
| Reciprocal cost of electricity | p3 | = | $ 51.51 + 2.305q per thousand k.w.h. of electricity |
| Problem
2-B (Table 1) |
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| Opportunity value of water capacity | y1 | = | $0 |
| Opportunity value of steam capacity | y2 | = | $244.44 - 11.135q per thousand cubic feet of steam |
| Opportunity value of electricity capacity | y3 | = | $0 |
| Opportunity value of demand capacity | y4 | = | $0 |
| Reciprocal cost of water | p1 | = | $ 66.65 + 1.805q per thousand gallons of water |
| Reciprocal cost of steam | p2 | = | $377.77 - 9.240q per thousand cubic feet of steam |
| Reciprocal cost of electricity | p3 | = | $ 66.69 + 1.610q per thousand k.w.h. of electricity |
| Problem
2-C (Table 1) |
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| Opportunity value of water capacity | y1 | = | $0 |
| Opportunity value of steam capacity | y2 | = | $0 |
| Opportunity value of electricity capacity | y3 | = | $ 73.33 - 3.340q per thousand k.w.h. of electricity |
| Opportunity value of demand capacity | y4 | = | $0 |
| Reciprocal cost of water | p1 | = | $ 97.89 + 0.365q per thousand gallons of water |
| Reciprocal cost of steam | p2 | = | $148.92 + 1.190q per thousand cubic feet of steam |
| Reciprocal cost of electricity | p3 | = | $105.93 - 0.165q per thousand k.w.h. of electricity |