Document Type

Thesis

Date of Award

1-31-1985

Degree Name

Master of Science in Management Engineering - (M.S.)

Department

Industrial and Management Engineering

First Advisor

David W. Mo

Abstract

The management of the electric utility company, as the management of any other company, has to make important decisions which will have a direct impact on the company's future operations.

In this study, a global model was devised which enables the management to make more intelligent decisions related to the company's planning process.

The company's goals and subgoals are formulated, in a systematic way, into the mathematical model along with operational and financial constraints. Productivity growth, steady labor force, fuel availability, cash flow requirements, share rating, and coverage were some of the goals to be achieved. The goal programming technique was used to reach the model's solution. The latter is an iterative technique which assigns different priority levels to different goals and subgoals. Then it seeks to achieve these goals according to their level of priorities.

The model was applied to a utility company and the results were analyzed for five different sets of priorities.

The management can incorporate "what if" situations by changing the priority levels, goal levels or by adding or deleting constraints. The analysis of the alternate solutions provides information for intelligent management decisions.

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