Refer to the Icebergs for Kuwait case. From the corresponding exercise in Chapter 3, review the design of a spreadsheet
for this problem.
a. Develop a base case. You may create any data you need for this purpose. Why is this base case appropriate for this situation?
b. Perform appropriate sensitivity analysis. Which parameters have the most significant impact on the results? Can you find applications for the Parametric Sensitivity, Tornado Chart, and Scenario Manager tools?
c. Identify applications of Goal Seek in this situation. (For  example, how large an iceberg should they tow in order to break even at the current price for pure water?)
d. Identify potential applications of optimization in this case.
e. Identify potential applications of simulation in this case.

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ICEBERGS FOR KUWAIT* TABLE 1 Towing Vessel Data Small Large Ship Size Daily rental (£) 400 800 500,000 10,000,000 The cost of desalinating seawater using conventional tech- nology in the Persian Gulf is high (around 0.1£ per cubic meter) and requires extensive amounts of oil. Some time ago scientists suggested that it could well prove both practically feasible and less expensive to tow icebergs from the Ant- arctic, a distance of about 9,600 km. Although some of the ice would undoubtedly melt in transit, it was thought that a significant proportion of the iceberg would remain intact upon arrival in the Gulf. Bear in mind that since water expands upon freezing, 1 cubic meter of ice produces only 0.85 cubic meter of water. Maximum load (cu. meter) TABLE 2 Melting Rates (meter/day) Distance from Pole (km) 1,000 2,000 3,000 >4,000 Speed 1 km/hr 0.06 0.12 0.18 0.24 A study was carried out to evaluate the practical pro- blems associated with such a proposal and to quantify the factors that were likely to influence the economics of such a venture. One factor was the difference in rental costs and capacities of towing vessels (summarized in Table 1). Note that each vessel has a maximum iceberg it can tow (mea- sured in cubic meters). It was found that the melting rate of the iceberg depends on both the towing speed and the distance from the South Pole (see Table 2). The data in 3 km/hr 0.08 0.16 0.24 0.32 5 km/hr 0.10 0.20 0.30 0.40 this table represents the rate at which a hypothetical sphe- ricalicebergshrinks in radius over a day at the given distance TABLE 3 Fuel Costs (€/km) from the Pole and at the given towing speed. Finally, fuel cost was found to depend on the towing speed and the (current) size of the iceberg (see Table 3). Current Volume (cu. meter) 100,000 1,000,000 Determine whether it is economically feasible to produce water from icebergs in the Persian Gulf, and if it is deter- mine the best means to do so. Speed 1 km/hr 8.4 10.5 3 km/hr 10.8 13.5 "Source: Cross, M. and A.O. Moscardini, 1985. Leaming the Art of Mathematical Modeling Ellis Horward Limited, West Sussex. 5 km/hr 13.2 16.5. Medium 600 1,000,000 10,000,000 12.6 16.2 19.8 ICEBERGS FOR KUWAIT* TABLE 1 Towing Vessel Data Small Large Ship Size Daily rental (£) 400 800 500,000 10,000,000 The cost of desalinating seawater using conventional tech- nology in the Persian Gulf is high (around 0.1£ per cubic meter) and requires extensive amounts of oil. Some time ago scientists suggested that it could well prove both practically feasible and less expensive to tow icebergs from the Ant- arctic, a distance of about 9,600 km. Although some of the ice would undoubtedly melt in transit, it was thought that a significant proportion of the iceberg would remain intact upon arrival in the Gulf. Bear in mind that since water expands upon freezing, 1 cubic meter of ice produces only 0.85 cubic meter of water. Maximum load (cu. meter) TABLE 2 Melting Rates (meter/day) Distance from Pole (km) 1,000 2,000 3,000 >4,000 Speed 1 km/hr 0.06 0.12 0.18 0.24 A study was carried out to evaluate the practical pro- blems associated with such a proposal and to quantify the factors that were likely to influence the economics of such a venture. One factor was the difference in rental costs and capacities of towing vessels (summarized in Table 1). Note that each vessel has a maximum iceberg it can tow (mea- sured in cubic meters). It was found that the melting rate of the iceberg depends on both the towing speed and the distance from the South Pole (see Table 2). The data in 3 km/hr 0.08 0.16 0.24 0.32 5 km/hr 0.10 0.20 0.30 0.40 this table represents the rate at which a hypothetical sphe- ricalicebergshrinks in radius over a day at the given distance TABLE 3 Fuel Costs (€/km) from the Pole and at the given towing speed. Finally, fuel cost was found to depend on the towing speed and the (current) size of the iceberg (see Table 3). Current Volume (cu. meter) 100,000 1,000,000 Determine whether it is economically feasible to produce water from icebergs in the Persian Gulf, and if it is deter- mine the best means to do so. Speed 1 km/hr 8.4 10.5 3 km/hr 10.8 13.5 "Source: Cross, M. and A.O. Moscardini, 1985. Leaming the Art of Mathematical Modeling Ellis Horward Limited, West Sussex. 5 km/hr 13.2 16.5. Medium 600 1,000,000 10,000,000 12.6 16.2 19.8 ICEBERGS FOR KUWAIT* TABLE 1 Towing Vessel Data Small Large Ship Size Daily rental (£) 400 800 500,000 10,000,000 The cost of desalinating seawater using conventional tech- nology in the Persian Gulf is high (around 0.1£ per cubic meter) and requires extensive amounts of oil. Some time ago scientists suggested that it could well prove both practically feasible and less expensive to tow icebergs from the Ant- arctic, a distance of about 9,600 km. Although some of the ice would undoubtedly melt in transit, it was thought that a significant proportion of the iceberg would remain intact upon arrival in the Gulf. Bear in mind that since water expands upon freezing, 1 cubic meter of ice produces only 0.85 cubic meter of water. Maximum load (cu. meter) TABLE 2 Melting Rates (meter/day) Distance from Pole (km) 1,000 2,000 3,000 >4,000 Speed 1 km/hr 0.06 0.12 0.18 0.24 A study was carried out to evaluate the practical pro- blems associated with such a proposal and to quantify the factors that were likely to influence the economics of such a venture. One factor was the difference in rental costs and capacities of towing vessels (summarized in Table 1). Note that each vessel has a maximum iceberg it can tow (mea- sured in cubic meters). It was found that the melting rate of the iceberg depends on both the towing speed and the distance from the South Pole (see Table 2). The data in 3 km/hr 0.08 0.16 0.24 0.32 5 km/hr 0.10 0.20 0.30 0.40 this table represents the rate at which a hypothetical sphe- ricalicebergshrinks in radius over a day at the given distance TABLE 3 Fuel Costs (€/km) from the Pole and at the given towing speed. Finally, fuel cost was found to depend on the towing speed and the (current) size of the iceberg (see Table 3). Current Volume (cu. meter) 100,000 1,000,000 Determine whether it is economically feasible to produce water from icebergs in the Persian Gulf, and if it is deter- mine the best means to do so. Speed 1 km/hr 8.4 10.5 3 km/hr 10.8 13.5 "Source: Cross, M. and A.O. Moscardini, 1985. Leaming the Art of Mathematical Modeling Ellis Horward Limited, West Sussex. 5 km/hr 13.2 16.5. Medium 600 1,000,000 10,000,000 12.6 16.2 19.8 ICEBERGS FOR KUWAIT* TABLE 1 Towing Vessel Data Small Large Ship Size Daily rental (£) 400 800 500,000 10,000,000 The cost of desalinating seawater using conventional tech- nology in the Persian Gulf is high (around 0.1£ per cubic meter) and requires extensive amounts of oil. Some time ago scientists suggested that it could well prove both practically feasible and less expensive to tow icebergs from the Ant- arctic, a distance of about 9,600 km. Although some of the ice would undoubtedly melt in transit, it was thought that a significant proportion of the iceberg would remain intact upon arrival in the Gulf. Bear in mind that since water expands upon freezing, 1 cubic meter of ice produces only 0.85 cubic meter of water. Maximum load (cu. meter) TABLE 2 Melting Rates (meter/day) Distance from Pole (km) 1,000 2,000 3,000 >4,000 Speed 1 km/hr 0.06 0.12 0.18 0.24 A study was carried out to evaluate the practical pro- blems associated with such a proposal and to quantify the factors that were likely to influence the economics of such a venture. One factor was the difference in rental costs and capacities of towing vessels (summarized in Table 1). Note that each vessel has a maximum iceberg it can tow (mea- sured in cubic meters). It was found that the melting rate of the iceberg depends on both the towing speed and the distance from the South Pole (see Table 2). The data in 3 km/hr 0.08 0.16 0.24 0.32 5 km/hr 0.10 0.20 0.30 0.40 this table represents the rate at which a hypothetical sphe- ricalicebergshrinks in radius over a day at the given distance TABLE 3 Fuel Costs (€/km) from the Pole and at the given towing speed. Finally, fuel cost was found to depend on the towing speed and the (current) size of the iceberg (see Table 3). Current Volume (cu. meter) 100,000 1,000,000 Determine whether it is economically feasible to produce water from icebergs in the Persian Gulf, and if it is deter- mine the best means to do so. Speed 1 km/hr 8.4 10.5 3 km/hr 10.8 13.5 "Source: Cross, M. and A.O. Moscardini, 1985. Leaming the Art of Mathematical Modeling Ellis Horward Limited, West Sussex. 5 km/hr 13.2 16.5. Medium 600 1,000,000 10,000,000 12.6 16.2 19.8

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a Develop a base case You may create any data you need for this purpose Why is this base case appropriate for this situation A base case is appropriat... View the full answer