Problem

The IRS has determined that during each of the next 12 months it will need the number of s...

The IRS has determined that during each of the next 12 months it will need the number of supercomputers given in Table 45. To meet these requirements, the IRS rents supercomputers for a period of one, two, or three months. It costs $100 to rent a supercomputer for one month, $180 for two months, and $250 for three months. At the beginning of month 1, the IRS has no supercomputers. Determine the rental plan that meets the next 12 months’ requirements at minimum cost. Note: You may assume that fractional rentals are okay, so if your solution says to rent 140.6 computers for one month we can round this up or down (to 141 or 140) without having much effect on the total cost.

table 45

Month

Computer Requirements

1

  800

2

1,000

3

  600

4

  500

5

1,200

6

  400

7

  800

8

  600

9

  400

10

  500

11

  800

12

  600

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