Subject category:
Case Method and Specialist Management Disciplines
Published by:
Darden Business Publishing
Version: December 1993
Length: 6 pages
Data source: Field research
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.
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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.