Abstract
The problem of smoothing the demand for industrial gas when there are large tariff incentives for doing so is considered. Two cases are discussed:
where the only control variables are the maximum hourly and daily flow rates;
where, in addition, gas storage tanks can be installed to help smooth the demand.
In case (a) an analytic solution to the problem of establishing the optimal hourly and daily maximum settings is derived. In case (b) the influence of the storage capacity on the demand distribution is analysed, and a method of solution is proposed. This can then be used, together with the solution for case (a), to establish the optimal number of storage tanks to install.
These ideas are applied to the gas usage in a steel factory.
*Now at: National Research Institute for Mathematical Sciences, C.S.I.R., P.O. Box 395, Pretoria 0001, South Africa.
*Now at: National Research Institute for Mathematical Sciences, C.S.I.R., P.O. Box 395, Pretoria 0001, South Africa.