The net annual operating cost (AOC) for a water treatment filtration plant for a semi-conductor fabrication line was estimated to be $1.5 million per year. The estimate was based on the $200,000 per year cost of a 1-MGD plant. The exponent in the cost-capacity equation is 0.80. (a) What was the size of the larger plant? (b) Build a spreadsheet to answer the same question. (c) If the plant manager has limited the AOC to $1 million per year, use your spreadsheet to determine the maximum MGD size plant that can be planned.
What will be an ideal response?
(a) In $ million units,
1.5 = 0.2(Q2/1)0.80
log 7.5 = 0.8(log Q2 – log 1)
1.09383 = log Q2
Q2 = 12.4 MGD
(b) Spreadsheet image is below with Goal Seek template set with AOC = $1.5 million.
Answer is 12.4 MGD
(c) Spreadsheet image is below with Goal Seek template set with AOC = $1.0 million.
Answer is 12.4 MGD
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