ABSTRACTA mathematical programming model is structured to find the optimal time and capacity expansion path of desalination plants and storage tanks for a hypothetical community which depends on desalination as its sole, or major, water supply source. The objective is to determine the least costly combination of sues and times of installation (of both desalting plants and storage tanks) which can meet a rising water demand over a finite planning horizon. The optimality criterion used in the model is based on two major economic elements: the economies of scale inherent in such facilities and the time‐value of money represented by the interest rate, the former favoring large capacities and the latter small capacities. The model is applied using three population growth patterns and two interest rates. The water demand components for every year in the planning period are computed using empirical formulas which are based on population and other basic data. The model is solved for each of the above cases with the aid of a computer program based on the method of feasible conjugate directions. The results clearly reflect the balance between the economies of scale and the time‐value of money under every demand growth funct
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