Question: Please solve using excel and solver! Thank you A natural gas trading company wants to develop an optimal trading plan for the next 10 days.

Please solve using excel and solver! Thank you A natural gas tradingPlease solve using excel and solver!

Thank you

A natural gas trading company wants to develop an optimal trading plan for the next 10 days. The following table summarizes the estimated prices (per thousand cubic feet (cf) at which the company can buy and sell natural gas during this time. The company may buy gas at the "Ask" price and sell gas at the "Bid" price. Day 10 Bid $3.06 $4.01 $6.03 $4.06 $4.01 $5.02 $5.10 $4.08 $3.01 $4.01 Ask $3.22 $4.10 S6.13 $4.19 $4.05 $5.12 $5.28 $4.23 $3.15 $4.18 The company currently has 150,000 cf of gas in storage and has a maximum storage capacity of 300,000 cf. To maintain the required pressure in the gas transmission pipeline system, the company can inject no more than 200,000 cf into the storage facility each day and can extract no more than 180,000 cf per day. Assume extractions occur in the morning and injections occur in the evening. The owner of the storage facility charges a storage fee of 5% of the market (bid) value of the average daily gas inventory. (The average daily inventory is computed as the average of each day's beginning and ending inventory.) a. Create a spreadsheet model for this problem and solve it. What is the natural gas company trading plan that maximizes profits for the next 10 days? If your answer is zero, enter "0". Thousand cubic feet Day Bought Sold 2 4 10 b. What is the company's profit for the optimal solution? c. Assuming price forecasts for natural gas change on a daily basis, how would you suggest the company in this problem actually use your model? The input in the box below will not be graded, but may be reviewed and considered by your instructor. A natural gas trading company wants to develop an optimal trading plan for the next 10 days. The following table summarizes the estimated prices (per thousand cubic feet (cf) at which the company can buy and sell natural gas during this time. The company may buy gas at the "Ask" price and sell gas at the "Bid" price. Day 10 Bid $3.06 $4.01 $6.03 $4.06 $4.01 $5.02 $5.10 $4.08 $3.01 $4.01 Ask $3.22 $4.10 S6.13 $4.19 $4.05 $5.12 $5.28 $4.23 $3.15 $4.18 The company currently has 150,000 cf of gas in storage and has a maximum storage capacity of 300,000 cf. To maintain the required pressure in the gas transmission pipeline system, the company can inject no more than 200,000 cf into the storage facility each day and can extract no more than 180,000 cf per day. Assume extractions occur in the morning and injections occur in the evening. The owner of the storage facility charges a storage fee of 5% of the market (bid) value of the average daily gas inventory. (The average daily inventory is computed as the average of each day's beginning and ending inventory.) a. Create a spreadsheet model for this problem and solve it. What is the natural gas company trading plan that maximizes profits for the next 10 days? If your answer is zero, enter "0". Thousand cubic feet Day Bought Sold 2 4 10 b. What is the company's profit for the optimal solution? c. Assuming price forecasts for natural gas change on a daily basis, how would you suggest the company in this problem actually use your model? The input in the box below will not be graded, but may be reviewed and considered by your instructor

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Databases Questions!