Re: Tuning of DMC LPCOST factors

Posted by Keith Landells on January 11, 19102 at 06:45:46:

In Reply to: Re: Tuning of DMC LPCOST factors posted by Sean Goodhart on November 14, 19101 at 18:40:20:

I've seen situations where, for example, the LP values jet fuel higher than diesel but the planners/business people want max diesel in order to satisfy a particular deal. Add onto this the fact that tankage constraints are not always accurately dealt with in LPs and I would always start on the basis that you never use "real" LP costs unless many other conditions (mentioned by others in other postings) are met.

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: I've seen situations where, for example, the LP values jet fuel higher than diesel but the planners/business people want max diesel in order to satisfy a particular deal. Add onto this the fact that tankage constraints are not always accurately dealt with in LPs and I would always start on the basis that you never use "real" LP costs unless many other conditions (mentioned by others in other postings) are met. 


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