Answer Happy

The Sentry Lock Corporation sells a variety of electronic goods
through television shows. The company has a number of storages to
keep the goods it sells, but also takes out a lease on additional
storage space when required. During the next 5 months the company
anticipates that it is going to need to take out a lease on the
following amounts of additional storage space:
In the beginning of any month the company can take out a lease
on additional space for one or more months at the following
costs:
Therefore, for example, in the beginning of month 1 the company
can take out a lease on as much space as it requires for four
months at a cost of $165 per ft2 . Similarly, in the beginning of
month 3 it can take out a lease on any amount of space for two
months at a cost of $85 per ft2 . The company needs to determine
the optimal way of satisfying its storage requirements over the
coming five months.
a. Formulate an optimization model for this problem
algebraically.









b. Formulate and solve an optimization model for this
problem on a spreadsheet.







c.
How much will it cost the company to satisfy its space requirements
if in each month it takes out a lease for one month exactly on the
amount of space needed for the month?