d)
A B C D E F G H I J K L M N O P Q R S
Month Covered by Lease? Total Space
Month of Lease: 1 1 1 1 1 2 2 2 2 3 3 3 4 4 5 Leased Required
Length of Lease: 1 2 3 4 5 1 2 3 4 1 2 3 1 2 1 (sq. ft.) (sq. ft.)
Month 1 1 1 1 1 1 30,000 >= 30,000
Month 2 1 1 1 1 1 1 1 1 30,000 >= 20,000
Month 3 1 1 1 1 1 1 1 1 1 40,000 >= 40,000
Month 4 1 1 1 1 1 1 1 1 30,000 >= 10,000
Month 5 1 1 1 1 1 50,000 >= 50,000
Cost of Lease $65 $100 $135 $160 $190 $65 $100 $135 $160 $65 $100 $135 $65 $100 $65
(per sq. ft.)
Total Cost
Lease (sq. ft.) 0 0 0 0 30,000 0 0 0 0 10,000 0 0 0 0 20,000 $7,650,000
Data cells: B4:P8, B10:P10, and S4:S8
To tal
Leased
(sq. ft.)
=SUMPROD UCT(B4:P4,$B$ 13:$P$13)
=SUMPROD UCT(B5:P5,$B$ 13:$P$13)
=SUMPROD UCT(B6:P6,$B$ 13:$P$13)
=SUMPROD UCT(B7:P7,$B$ 13:$P$13)
=SUMPROD UCT(B8:P8,$B$ 13:$P$13)
Total Cost
= SUMPRO DUCT(B10:P10,B13:P13)
e) Let xij = square feet of space leased in month i for a period of j months.
for i = 1, … , 5 and j = 1, … , 6-i.
Minimize C = $650(x11 + x21 + x31 + x41 + x51) + $1,000(x12 + x22 + x32 + x42)
x14 + x15 + x23 + x24 + x32 + x33 + x41 + x42 ≥ 10,000 square feet
x15 + x24 + x33 + x42 + x51 ≥ 50,000 square feet
and xij ≥ 0, for i = 1, … , 5 and j = 1 , … , 6-i.
3.14
Activity 1 Activity 2 Activity 3 Activity 4
Unit Cost 2 1 -1 3
Minimum
Level Acceptable
Achieved Level
Benefit 1 3 2 -2 580 >= 80
Benefit 2 1 -1 0 1 10 >= 10
Benefit 3 1 1 -1 2 32.857 >= 30
Activity 1 Activity 2 Activity 3 Activity 4 Total Cost
Level of Activity 0 4.286 0 14.286 47.14
3.15 a) This is a cost-benefit-tradeoff problem because it asks you to meet minimum required
benefit levels (number of consultants working each time period) at minimum cost.