During the month of August, there is a 20% increase in demand at each of the three
cities, which can be met by purchasing electricity from another network at a premium
rate of $1000 per million kWh. The network is not linked to city 3, however. The utility
company wishes to determine the most economical plan for the distribution and purchase
of additional energy.
(a) Formulate the problem as a transportation model.
(b) Determine an optimal distribution plan for the utility company.
(c) Determine the cost of the additional power purchased by each of the three cities.