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Business, 06.10.2019 04:30 awdadaddda

Acompany sells many household products through an online catalog. the company needs substantial warehouse space for storing its goods. plans are now being made for leasing warehouse storage space over the next 5 months. just how much space will be required in each of these months is listed in the table below (left). because the space requirements are quite di erent month-to-month, we may choose to lease only the amount needed each month on a month-to-month basis. on the other hand, the monthly cost of leasing space for two or more months at a stretch (in a single lease) is much less than that for multiple one-month leases, so it would be less expensive to have some leases for a longer duration. therefore, it is acceptable to have several leases of varying durations, starting/ending in di erent months, of di erent amounts warehouse space active during any month of the planning horizon. formulate a linear optimization model to the company identify an optimal leasing strategy that meets its needs.

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