The Acme Manufacturing Company is concerned about its warehouse needs and how they can be best met. The company produces a line of spare parts for appliances. Due to the combination of production policies and demand patterns, warehousing space requirements vary considerably throughout the year. Space requirements are known with great certainty because the product line satisfies a replacement market. Growth, or decline, in production and sales, is not anticipated in the near future. Monthly sales rates for a typical year are as follows

Month	Sales, $	Month	Sales, $
Jan	5,000,000	July	1,250,000
Feb	4,000,000	Aug	2,250,000
Mar	3,000,000	Sept	3,000,000
Apr	2,000,000	Oct	3,500,000
May	1,000,000	Nov	4,000,000
Jun	250,000	Dec	4,500,000
		Total	33,750,000

Warehouse inventory turns at the rate of two times per month. A dollars worth of merchandise occupies 0.1 cuft of warehouse space and can be stacked 10 ft high. The product density is $5 per lb. Given aisles, administrative space, and normal operating efficiency, only 40% of the total warehouse space is actually used for storage.

A private warehouse can be constructed and equipped for $35 per sqft and can be amortized over 20 years. The cost of operations is 2 cents per dollar of throughput (lb). Annual fixed costs amount to $10 per sq ft of total space. Space may also be rented for a storage charge on inventory of 6 cents per lb per month, and a handling charge of 5 cents per lb of throughput.

What size of the private warehouse should be constructed, to the nearest 10,000 sq ft, or what amount of public warehouse should be rented? To what extent and when should each type of space be used?