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Supply, Storage, and Service Reliability Decisions by Gas Distribution Utilities: A Chance-Constrained Approach: Comments on Guldmann's Paper

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  • Jill J. Rasmussen

    (Gas Research Institute, Washington, D.C.)

Abstract

A question has been raised as to the value of Guldmann's paper because the model application indicates very small increments of benefits over costs for the "optimal" decision across a wide range of "nonoptimal" ones. That is, no matter what decision is made about storage capacity or reliability level, savings are on the order of 1 percent of costs. In addition, similar increments of benefit occur irrespective of conversion capacity or reliability level.

Suggested Citation

  • Jill J. Rasmussen, 1983. "Supply, Storage, and Service Reliability Decisions by Gas Distribution Utilities: A Chance-Constrained Approach: Comments on Guldmann's Paper," Management Science, INFORMS, vol. 29(8), pages 907-908, August.
    • Handle: RePEc:inm:ormnsc:v:29:y:1983:i:8:p:907-908
    DOI: 10.1287/mnsc.29.8.907
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