# 1. is the optimal network expansion for Ecotricity? Define the appropriate decision variables. Formulate a decision model and find/clarify both the optimal decision and the

1.     is the optimal network expansion for Ecotricity? Define the appropriate decision variables. Formulate a decision model and find/clarify both the optimal decision and the optimal value of the objective function using a spreadsheet model (verbal model is not expected). 2.    if the budget was £50,000 less? would be the impact on the optimal decision and the expanded capacity? (Use a separate sheet for this.) 3.   Now suppose Ecotricity is able to acquire additional funds and increase its current budget by up to £50,000. would be your recommended budget? nt: Find the budget with the highest return on (additional) investment (ROI). Use increments of £10,000 and compute ROI in this case as: amount of additional capacity as a result of extra fund / amount of additional fund (in £10,000) This is a real-world case study based on real data and, as it is typical of such applications, the problem is not framed as clearly as the problems we’ve worked on in class. The following notes you put the pieces together. 1.    is the goal? It’s a network expansion project for 2030, so it makes sense to maximize the (expanded) capacity. 2.   The last paragraph of the case refers to the “estimated charging demand.” Consider it as referring to demand for each highway segment. Also, remember they are looking into 2030. 3.   In the same paragraph, read “proportion” as “number”! 4.   In order to determine the optimal network expansion, you need to calculate the capacity for TypeA and TypeB chargers. Use Exhibit 1 and compute capacities in terms of the number of cars that can be charged per day. Consider all 24 hours of a day operational. 5.   Although cars may not arrive in a uniform manner over a day, assume that your computed capacity is a workable estimate for this case. 6.   Consider the numbers you see in the Price column of Exhibit 1 as exact prices (ignore “From”) 7.   In your calculations, round up when dealing with demand and round down when dealing with resources. It’s good practice to be conservative when working on optimization problems. Number of Potential
ghway
existing
Locations
Segment
Charging
for New
points
Chargers
01
58048
4
w
02
52594
N
NN
23
62726
45
61202
3
2
56
76030
w
2 Number of
Zone
Local and Unitary authority districts
Ecotricity customers
houses
01 (M5)
Stroud and South Gloucestershire
127,000
845
02 (M4)
Swindon
68,000
453
23 (M4)
West Berkshire
52,000
345
45 (M40) Aylesbury Vale
55,000
366
56 (M40) Chiltern and Wycombe
94,000
626

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