Consider Merlene Olonga’s equipment-leasing problem discussed earlier in the chapter. She is not satisfied with the answer obtained by the model of Figure 5.4, which found that a four-year leasing policy was the most economical solution. Merlene knows that her company’s microcomputer system must be kept up to date and has decided that any equipment can be retained only for a maximum period of three years. By modifying the Cij cost options to reflect Merlene’s new request, re-run the model and find Merlene’s best option under these new conditions.

(Answer: Set the current option of C15 equal to a very large cost, say £99,999, and re-run the model.

The new policy is C12 + C25, giving a total cost of £34,500.)