Problem

An insurance company believes that it will require the following numbers of personal compu...

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: one-month 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 , not $450, should be assessed in the objective function.

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