Formulate an LP model for this problem
Use Solver to create a Sensitivity Report for question 39 at the end of Chapter 3, and answer the following questions.
a. Is the solution degenerate?
b. Is the solution unique?
c. Use a Solver Table to determine the maximum price the Pelletier Corporation should be willing to pay for a two-month lease.
d. Suppose the company is not certain that it will need exactly 20,000 sq. ft. in month 3 and believes that the actual amount needed may be as low as 15,000 sq ft or as high as 25,000 sq. ft. Use a Solver Table to determine if this would have any impact on the leasing arrangements the company selects in months 1 and 2.
Question 39
The Pelletier Corporation has just discovered that it will not have enough warehouse space for the next five months. The additional warehouse space requirements for this period are listed in the following table.
To cover its space requirements, the firm plans to lease additional warehouse space on a short-term basis. Over the next five months, a local warehouse has agreed to lease Pelletier any amount of space for any number of months according to the following cost schedule.
This schedule of leasing options is available to Pelletier at the beginning of each of the next five months. For example, the company could elect to lease 5,000 square feet for four months beginning in month 1 (at a cost of $850Â 5) and lease 10,000 square feet for two months beginning in month 3 (at a cost of $525Â 10).
a. Formulate an LP model for this problem.
b. Create a spreadsheet model for this problem, and solve it using Solver.
c. What is the optimal solution?
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Answers
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Posted 26 May 2017 01:05 PM
My Price 6.00
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