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Problem 6. (25 total points) Professor Scutari is so proud of your grade on the

ID: 3045297 • Letter: P

Question

Problem 6. (25 total points) Professor Scutari is so proud of your grade on the first midterm that he gets you a job with Purdue Facilities. They are rebuilding our beloved Grissom Hall. For the next three months, they need to store extra equipment, building materials, etc. A local company offers warehouse space based on monthly usage. You need to set up an LP to find the cheapest way to store what is needed. Below is a chart of the space you need for each month. Next to it is a chart of the leasing options-the total price per square foot leased and the corresponding duration. Note that you may have multiple, overlapping leases (e.g. two one-month leases for March and April and a two-month lease starting in April). All leases should end by May. You may lease more space than required DurationCost per Sq. ft. leased (months) Mbnth Space Required March April20,000 May $65 $100 $135 30,000 40,000

Explanation / Answer

We will use this notation:

x0: The space leased only for March.
x1: The space leased only for April.
x2: The space leased only for May.
x3: The space leased for March and April.
x4: The space leased for April and May.
x5: The space leased for March, April, and May.

Note that there can be upto 3 leases for March, 4 leases for April, and 3 leases for May. The LP model will be:

Minimise 65x0+65x1+65x2+100x3+100x4+135x5
s.t.
x0+x3+x5>=30000                 # space leased for March is atleast 30,000 sq.ft
x1+x3+x4+x5>=20000                 # space leased for April is atleast 20,000 sq.ft
x2+x4+x5>=40000                 # space leased for May is atleast 40,000 sq.ft
x0,x1,x2,x3,x4,x5>=0

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