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Case 5-2:

Controlling Air Pollution

(Hillier & Hillier)

Submitted by:
Elena Berges (MS18F021)
Shreya (MS17A054)
• The NORI & LEETS. , one of the major producers of steel in its
part of the world, is located in the city of Steeltown and is
the only large employer there

• Steeltown has grown and proposed along with the company

which now employs nearly 50,000 residents

• The attitude of people has been very positive towards the

company until now

• But the attitude is changing recently due to the uncontrolled

air pollution from company’s furnace

• So, the company is looking for ways to control air pollution

at the minimum cost.
Problem Understanding
• There are 3 types of pollutants : particulate matter,
sulfur oxides and hydrocarbons.

• There are 2 primary sources of pollution: blast furnaces

& open-hearth furnaces.

• For each source, 3 methods to reduce pollution have

been identified: taller smokestacks, using filters & using
better fuels.

• The amount of emissions can be eliminated from each

type of furnace by using each reduction method is

• The reduction methods can be combined in any

proportion for the different sources and the methods
don’t affect each other.
Problem Formulation
• Decision variables : Let X1-X6 be fraction of the highest
possible level of a method employed for each type of

• Objective Function : Minimize the total cost

(8 X1 + 10 X2 + 7 X3 + 6 X4 + 11 X5 + 9 X6)

• Constraints :
(12 X1 + 9 X2 + 25 X3 + 20 X4 + 17 X5 + 13 X6 >=60)
(35 X1 + 42 X2 + 18 X3 + 31 X4 + 56 X5 + 49 X6 >=150)
(37 X1 + 53 X2 + 28 X3 + 24 X4 + 29 X5 + 20 X6 >=125)
X1-X6 <= 100%
• Optimal Solution:
(X1, X2, X3, X4, X5, X6) =(100%,62.27%,34.35%,100%,4.76%,100%)

Total Cost = 32.16 million dollars

Identify sensitive parameters.
Which parameters should be
estimated more closely?

• Sulfur oxides
• Hydrocarbons
Analyze the effect of inaccuracy in estimating
each cost parameter.
• True value 10% less than the estimated value
• True value 10% more than the estimated value
For each pollutant, specify the rate at which optimal
solution will change with any small change in required

•Particulates :
Optimal Cost will change by 0.111 millions per unit change in the RHS
This shadow price is valid only for RHS ranging from (74.30 – 52.52)
•Sulfur Oxides :
Optimal Cost will change by 0.127 millions per unit change in the RHS
This shadow price is valid only for RHS ranging from (170.45 – 148.31)
Optimal Cost will change by 0.069 millions per unit change in the RHS
This shadow price is valid only for RHS ranging from (127.04 – 21.69)
For each unit change in the policy standard for
particulates, what is the change that would keep the
total cost of an optimal solution unchanged?

𝑷𝒂𝒓𝒕𝒊𝒄𝒖𝒍𝒂𝒕𝒆𝒔 𝑺𝒉𝒂𝒅𝒐𝒘 𝑷𝒓𝒊𝒄𝒆

𝑷𝒐𝒍𝒍𝒖𝒕𝒂𝒏𝒕 𝑺𝒉𝒂𝒅𝒐𝒘 𝑷𝒓𝒊𝒄𝒆

• In the opposite direction of Sulphur oxide:

0.88 units of Sulphur oxides.
• In the opposite direction of hydrocarbons:
1.6 units of hydrocarbons.
• In the opposite direction from particulates, doing a simultaneous and
equal change for Sulphur oxides and hydrocarbons:
0.57 units of Sulphur oxides.
0.57 units of hydrocarbons.
θ: percentage increase in the policy standards.
Find an optimal solution and the total cost for

Cost: $31,898,188.31
• Changed 1 unit of particulates
• 0.80 units of sulphhur oxides
• 1.22 units of hydrocarbons
• For 1 unit change of particulates
• 0.48 units of sulphur oxides
• 0.48 units of hydrocarbons