Linear Programming using graphical method

| May 21, 2015

Effective pricing and efficiencies are always difficult to determine for municipallyowned services.The best way is to compare the cost against the service.However, the relative size differences and cost per unit of the service tend to make it difficult to equalize between disparate municipal services for proper analysis. Linear programming is an effective way of equalizing the differences to do relational analysis to determine efficiency, sensitivity, and alternatives.

Consider the following data from 2003.Presented is data from major water utilities in Florida and Georgia.Each state says it has the most efficient and cost-effective water utilities for its rate payers.The data is presented:

Source:American Water Works Association 2003 Survey of Water Utilities in the United States

The “Utilities” title is the name of the municipality and its water service. Population is the number of people who receive service from the utility.The rate is the charge for water per 1000 gallons, and the capacity is the water production in 1000 gallons per day.

Your assignment is as follows:

1. Determine the relative efficiency of each state’s water services using the graphical technique, identifying the feasible region.Note the most and least efficient utility in each state (Chapters 2 and 3).
2. Assume an environmental change that will have an overall 10% increase in the rate charged for water.What utilities are the most at-risk for changes in their rates as tabulated?Show graphically (Sensitivity analysis, Chapter 4).
3. Combine the two tables above (with the 10% increase).Determine:
a) The most and least efficient graphically
b) The utilities most sensitive if there is a chemical cost that increases rates by 5%best custom essay experts

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