Friday, June 26, 2020

Natural Gas Curtailment Marketing Case Assignment - 1100 Words

Natural Gas Curtailment Marketing Case Assignment (Case Study Sample) Content: NATURAL GAS CURTILMENT CASE STUDYNameInstitution AffiliationDateIntroductionIn June1980 the general manager of Texas Harry Sinclair received a notification from Ben Elliot that there is natural gas shortage in the Houston area due to heat wave. For the shortage in natural gas the manager decided to allocate gas to its customers on the following priorities; first he prioritized Residential and commercial heating and cooling, second he made a Priority on Commercial and industrial firms that use natural gas as source of raw material and Thirdly on Industrial firms that use natural gas as a boiler fuelAccording to Ben Elliot Agri- Chem, Corporations uses on the natural gas were to be in the second and third priority. Enerco decided to enforce rolling browouts which is temporary and periodic curtailment of natural gas supplies.Now we need to study and analyze the information and decide which product the company should produce that will be less affected by curtailment of Natural gas and decide what production level the company should use to maximize the profit of the company.First of all we will identify the X's of the products:Let:X1 be produced amount of AmmoniaX2 be produced amount of Ammonium PhosphateX3 produced Ammonium NitrateX4 produced amount of UreaX5 produced Hydrofluoric acid amountX6 produced amount of ChlorineX7 produced amount of Caustic sodaX8 produced Vinyl chloride monomerTable below show the contribution of the profit and overhead for each product which will help us in concluding the objective function.Table 1 contribution to profit and overhead Product $/Ton Ammonia 80 Ammonium phosphate 120 Ammonium nitrate 140 Urea 140 Hydrofluoric acid 90 Chlorine 70 Caustic soda 60 Vinyl chloride monomer 90 For 20% natural gas curtailmentObjective function will be.Maximize profit 80 X1 +120 X2 +140 X3 +140 X4 +90 X5 +70 X6+60 X7 +90 X8Before writing the constraints, we should take the percentage or capacity under consideration as the table be low shows the percentage of the capacity of each product.Table 2 operational data Product capacity(tons/day) Production Rate (%of capacity) Natural gas consumption (1,000 cu. ft./ ton Ammonia 1500 80 8 Ammonium phosphate 600 90 10 Ammonium nitrate 700 70 12 Urea 200 80 12 Hydrofluoric acid 800 70 7 Chlorine 1500 80 18 Caustic soda 1600 80 20 Vinyl chloride monomer 1400 60 14 Calculation for the natural gas capacityAmmonia:Ammonium phosphate:Ammonium nitrate:Urea:Hydrofluoric acid:Chlorine:Caustic soda:Vinyl chloride monomer:85,680 cu. ft. x 103 is the Natural gas current usage is per day. The range Enerco projects curtailments is from 20 to 40 percent, so 20% from85,680 = , then subtract it from 85,680= 68,544 cu. ft. x 103 per day.ConstraintsX1 1200, X2 540, X3 490, X4 160X5 560, X6 1200, X7 1280, X8 8408 X1 +10 X2 +12 X3 +12 X4 +7 X5 +18 X6 +20 X7 +14 X8 68,544-20955173659900The figures below show the results by using QM. First, we chose linear program then we chose 9 constra ints and 8 variables, then we inserted the data to the QM table.Results for 20% natural gas curtailment.After inserting the data, we pressed the Solve button to solve the linear program problem; the figure below shows the result of the case study.The optimal solution for the natural gas is.X1 =1200 ton /day, X2 =540 ton /day X3 =490 ton/dayX4 =160 ton/day X5 =560 ton/day X6 =1200 ton /dayX7 =423.2 ton /day X8 =840 ton /day z = 487,192 ton /dayWe can see that there is reduction in production of caustic soda from 1200 to 423.2 tons /day.40% curtailment of natural gas.Function ObjectiveMaximizing profit 80 X1 +120 X2 +140 X3 +140 X4 +90 X5 ...

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