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Corporate model of an electric utility

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7 Author(s)

The importance of computers and simulation in management planning is reflected in this article describing a model of a hypothetical, investor-owned electric utility company. The model, which consists of three interrelated digital computer programs¿an economic simulation, a cost simulation (based on power generation expenses), and an auxiliary nuclear fuel management program¿is designed as a total corporate planning tool. All corporate activities, and certain environmental parameters, are represented by the economic simulation. The production cost simulation is designed to supply fuel cost information to the economic simulation and the fuel management program to supply nuclear fuel scheduling and cost data to both of the other programs. In the corporate model, management¿both financial and operative¿has a tool by which it is able to quickly assess the effects of one department's action upon another.

Published in:

Spectrum, IEEE  (Volume:6 ,  Issue: 6 )