An electrical utility needs to generate 6,500 megawatts of electricity

An electrical utility needs to generate 6,500 megawatts of electricity today. It has five generators. If any electricity is generated by a given generator, that generator must be started up and a fixed start-up cost is incurred. There is an additional cost for each megawatt generated by a generator. These costs, as well as the maximum capacity of each generator, are shown in the following table. The objective is to determine the minimum cost plan that meets the electrical needs for today.

a. Formulate a BIP model in algebraic form for this problem.

b. Formulate and solve this model on a spreadsheet?

 

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