Assignment
Assignment
Assignment
Plant
Vindhyachal
Super Thermal
Power Station
Mundra
Thermal Power
Station
Amravati
Thermal Power
Plant
Trombay
Thermal Power
Station
Jindal Megha
Power Plant
Nashik Thermal
Power Station
Kota Super
Thermal Power
Plant
Farakka Super
Thermal Power
Station
Tehri Dam
Region
Qty
Parame Parame Paramet Paramete
Power
Availa
Price (per
ter 1
ter 2
er 3 (1- r 4 (1-10
Transmiss
ble (in
MW)
(ratio) (in %) 10 Scale)
Scale)
ion Cost
MW)
Vindhya
Nagar
672
10.5
0.60%
$
500.00
$
100.00
Mundra
400
6.5
1.40%
$
310.00
Amravati
1200
12
0.95%
$
$
750.00 150.00
Trombay
168
11
1.00%
$
600.00
$
60.00
84
12
0.70%
Nashik
210
10
0.70%
Kota
588
1.35%
$
600.00
$
625.00
$
440.00
$
75.00
$
50.00
$
120.00
Farakka
168
15
1.10%
$
600.00
$
110.00
300
1.30%
Bhakra Dam
Uttarakha
nd
Punjab
210
13
1.30%
Hirakud Dam
Odisha
180
14
0.50%
$
300.00
$
460.00
$
505.00
$
90.00
$
130.00
$
115.00
Raigarh
Reliable Power has entered into an exclusive agreement with the state of Gujarat
which provides the company with tax incentives as long as the company buys at
least 40% of its power each month from Mundra Thermal Power Station.
Parameter 1 must stay between 11. 5 and 12.5 in each months purchase
Parameter 2 must remain between 0.75 and 1 percent.
Parameter 3 must stay at 4 or lower.
Parameter 4 must remain between 4.5 and 5.5.
Rakeshs boss is a unique individual. Rakesh know that irrespective of the
procurement plan that he comes up with, his boss would invariably ask him to do
better. In fact, Rakesh is pretty much sure that his boss would ask him to reduce the
cost by another 5%.
Rakesh has to minimize procurement cost. He has to decide on the amount of power
to be bought from the different power stations. Help him prepare his procurement
plan.
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