Research Reports from the Department of Operations
Document Type
Report
Publication Date
1-1-1978
Abstract
Storage and purchasing policies that minimize expected shortages of natural gas in the service area supplied by a single natural gas utility are developed. The problem is formulated and solved using a multi-period linear programming model. The model takes into consideration the variability of weather conditions and its effect on the demand for natural gas. Forecasts of future weather conditions are updated several times during the model planning periods; also, the optimal flows of natural gas are determined at the time that the forecasts are updated. The optimal storage quantities at the beginning of each time period and the consequences of contracting additional storage facilities on the total natural gas shortage are derived by using the model. The natural gas planning strategy is to plan the natural gas flows based on an estimated demand such that the total expected cost of natural gas purchased from emergency suppliers during a year will be minimized. Planning the natural gas flows is updated several times during the late autumn and win- ter periods in order to obtain an optimal estimation of the future flows of natural gas.
Keywords
Operations research, Gas industry, Natural gas, Linear programming, Energy policy
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 436
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Levary, Reuven R. and Dean, Burton V., "A Natural Gas Purchasing and Storage Model Under Uncertainty in Demand" (1978). Research Reports from the Department of Operations. 331.
https://commons.case.edu/wsom-ops-reports/331