Operating margins-It’s a gas!

This paper summarises OR’s involvement in an important area of British Gas’s planning process. It describes how Operational Research OR developed a large simulation model to estimate the amount of gas that should be stored in tanks throughout the country to overcome supply problems. Supply problems occur when we encounter severe weather conditions, offshore supply shortfalls and errors in forecasting demand for the next one or two days. The content is deliberately non-technical and is intended as a real example of the way in which Operational Research OR can contribute to the successful operation of a major industry.