OPTIMIZATION OF DEVELOPMENT PLAN OF THE LIWA CITY WATER SUPPLY SYSTEM BY MEANS OF LINEAR PROGRAM MODELING

• Main Author: RIANTO (NIM : 25713305), AGUS
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25144
• Institution: Institut Teknologi Bandung

Scarcity of funds and others resources are typical problems in a small scale water supply system, as happened in Liwa City. The scarcity causes the inability of local water supply company (PDAM) to runs its service activities in healthy way, particularly in its financial aspect. Therefore, optimization of all available resources is required in order to achieve maximum revenue. Linear program is a tool that could optimizes an operational activity which its objective, variables, and constraints can be identified. Whereas development of water supply system can be considered as a business activity that satisfies the criterion, and therefore can be modeled in a linear program. The linear program developed in this research is an optimization model for multi-period activity planning during the projection years of 2017 - 2031. The modeling generates a linear program with 25 decision variables and 33 constraint functions. Optimization result for the initial model (Scenario I) recommends investments for 1,798 units of new house connection, 3,820 units of water meter, 7,653 meters of distribution pipeline during the projection years. Optimum resources allocation and phasing strategy allow revenue with NPV Rp1,251,017,645.00. Simulations are also be conducted to know effect of policy change to the optimization results. Scenario II, namely simulation by changing the tariff plan policy, recommends investments for 1,593 units of new house connection, 3,820 units of water meter, and 7,653 meters of distribution pipeline with estimated optimum NPV Rp661,692,354.00. Scenario III, namelu simulation by eliminating the target of distribution pipeline extension, recommends investments for 3,289 unit of new house connection and 3,820 units of water meter with estimated optimum NPV Rp6,689,779,116.00. Meanwhile cenario IV, namely simulation by liberating PDAM from payment obligation to local government's revenue, recommend investments for 6,118 units of new house Connection, 3,820 units of water meter, and 7,653 meters of distribution pipeline with estimated optimum NPV Rp17,228,388,803.00. The best optimum scenario is recommended for Scenario IV.