2 An insurance company believes that it will require the following numbers of personal computers during the
Question:
2 An insurance company believes that it will require the following numbers of personal computers during the next six months: January, 9; February, 5; March, 7; April, 9;
May, 10; June, 5. Computers can be rented for a period of one, two, or three months at the following unit rates: onemonth rate, $200; two-month rate, $350; three-month rate,
$450. Formulate an LP that can be used to minimize the cost of renting the required computers. You may assume that if a machine is rented for a period of time extending beyond June, the cost of the rental should be prorated. For example, if a computer is rented for three months at the beginning of May, then a rental fee of
2/3(450) = $300, not $450, should be assessed in the objective function.
Step by Step Answer:
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston