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The Application of Linear Programming to the Determination of Transmission Fees in an Electrical Power Network

Author

Listed:
  • Oddmund Aarvik

    (Samkjøringen av Kraftverkene i Norge, Oslo, Norway)

  • Paul Randolph

    (Iowa State University, Ames, Iowa and The University of Oslo, Oslo, Norway)

Abstract

This article demonstrates how the transportation method of linear programming was used to solve a practical accounting problem in the electrical power industry of Norway, namely, the determination of transmission costs as a function of the product of megawatts times the distance in kilometers for each subscriber in the electrical network. It a subscriber has several points where power is fed into the system or taken out of the system, contract requirements specify that he shall pay for a transmission configuration which gives the lowest sum of the transmission quantities. The transportation algorithm is used to solve this minimization problem.

Suggested Citation

  • Oddmund Aarvik & Paul Randolph, 1975. "The Application of Linear Programming to the Determination of Transmission Fees in an Electrical Power Network," Interfaces, INFORMS, vol. 6(1), pages 47-49, November.
    • Handle: RePEc:inm:orinte:v:6:y:1975:i:1:p:47-49
    DOI: 10.1287/inte.6.1.47
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