Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using microsoft excel and the solver ad in and solver sensitivity report solve the following question: Cox Cable Company needs to lease warehouse storage space

Using microsoft excel and the solver ad in and solver sensitivity report solve the following question:

Cox Cable Company needs to lease warehouse storage space for five months at the start of the year. It knows how much space will be required in each month. However, since these space requirements are quite different, it may be economical to lease only the amount needed each month on a month-by-month basis. On the other hand, the monthly cost for leasing space for additional months is much less than for the first month, so it may be desirable to lease the maximum amount needed for the entire five months. Another option is the intermediate approach of changing the total amount of space leased (by adding a new lease and/or having an old lease expire) at least once but not every month. Two or more leases for different terms can begin at the same time.

The space requirements (in square feet) and the leasing costs (in dollars per thousand square feet) are given in the tables below.

Month

Space requirements

Lease length

Lease cost

Jan

15,000

1 month

$280

Feb

10,000

2

450

Mar

20,000

3

600

April

5000

4

730

May

25,000

5

820

The task is to find a leasing schedule that provides the necessary amounts of space at the minimum cost.

A.) Determine the optimal leasing schedule and the optimal total cost.

B.) Consider what happens when the cost of a 5-month lease (currently $820) changes. Construct a graph showing how the optimal total cost varies with the cost of a 5-month lease, over the range from $800 to $1000.

C.) Consider instead what happens when the timing of space requirements shifts. In particular, suppose that March requirements drop and April requirements rise by the same amount. Construct a table to show, for shift amounts up to 15,000 square feet, how the shift alters the optimal total cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Current Trends In Database Technology Edbt 2006 Edbt 2006 Workshops Phd Datax Iidb Iiha Icsnw Qlqp Pim Parma And Reactivity On The Web Munich Germany March 2006 Revised Selected Papers Lncs 4254

Authors: Torsten Grust ,Hagen Hopfner ,Arantza Illarramendi ,Stefan Jablonski ,Marco Mesiti ,Sascha Muller ,Paula-Lavinia Patranjan ,Kai-Uwe Sattler ,Myra Spiliopoulou ,Jef Wijsen

2006th Edition

3540467882, 978-3540467885

More Books

Students also viewed these Databases questions