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The IRS has determined that during each of the next 12 months it will need the n

ID: 3143271 • Letter: T

Question

The IRS has determined that during each of the next 12 months it will need the number of supercomputers given in Table 1. To meet these requirements, the IRS rents supercomputers for a period of one, two, or three months. It costs $1,000 to rent a supercomputer for one month, $1, 800 for two months, and $2, 500 for three months. At the beginning of month 1, the IRS has no supercomputers. 1. Formulate an LP to determine the rental plan that meets the next 12 months requirements at minimum total cost 2. Give the dual of the LP in item 1.

Explanation / Answer

(1)

Let JAN1 number of computers rented at beginning of January for one month, and so on. Also define IJAN number of computers available to meet January demand, and so on. The appropriate LP is

min z = 1000(JAN1 + FEB1 + MAR1 + APR1 + MAY1 + JUN1+ JULY1+AUG1+SEP1+OCT1+NOV1+DEC1) + 1800(JAN2 + FEB2 + MAR2 + APR2 + MAY2 + JUN2+ JULY2+AUG2+SEP2+OCT2+NOV2+DEC2) + 2500(JAN3 + FEB3 + MAR3 + APR3 + MAY3 + JUN3+ JULY3+AUG3+SEP3+OCT3+NOV3+DEC3) – 833.33 NOV3 - 1666.67 DEC3 - 900DEC2

s.t.

IJAN = JAN1 + JAN2 + JAN3

IFEB = IJAN - JAN1 + FEB1 + FEB2 + FEB3

IMAR = IFEB - JAN2 - FEB1 + MAR1+ MAR2 + MAR3

IAPR = IMAR - JAN3 - FEB2 - MAR1 + APR1 + APR2 + APR3

IMAY = IAPR - FEB3 - MAR2 - APR1+ MAY1 + MAY2 + MAY3

IJUN = IMAY - MAR3 - APR2 - MAY1+ JUN1 + JUN2 + JUN3

IJUL = IJUN - APR3 - MAY2 - JUN1+ JUL1 + JUL2 + JUL3

IAUG = IJUL - MAY3 - JUN2 - JUL1+ AUG1 + AUG2 + AUG3

ISEP = IAUG - JUN3 - JUL2 - AUG1+ SEP1 + SEP2 + SEP3

IOCT = ISEP - JUL3 - AUG2 - SEP1+ OCT1 + OCT2 + OCT3

INOV = IOCT - AUG3 - SEP2 - OCT1+ NOV1 + NOV2 + NOV3

IDEC = INOV - SEP3 - OCT2 - NOV1+ DEC1 + DEC2 + DEC3

IJAN 800

IFEB 1000

IMAR 500

IAPR 600

IMAY 1200

IJUN 400

IJUL 800

IAUG 600

ISEP 400

IOCT 500

INOV 800

IDEC 600

All variables 0

(2)

Thus, Dual program of above LP is

max z = 800(1JAN) + 1000(1FEB) + 500(1MAR) + 600(1APR) + 1200(1MAY) + 400(1JUN) + 800(1JUL) + 600(1AUG) + 400(1SEP) + 500(1OCT) + 800(1NOV) + 600(1DEC)

s.t.

JAN1 + FEB1 + MAR1 + APR1 + MAY1 + JUN1+ JULY1+AUG1+SEP1+OCT1+NOV1+DEC1 1000

JAN2 + FEB2 + MAR2 + APR2 + MAY2 + JUN2+ JULY2+AUG2+SEP2+OCT2+NOV2+DEC2 1800

JAN3 + FEB3 + MAR3 + APR3 + MAY3 + JUN3+ JULY3+AUG3+SEP3+OCT3+NOV3+DEC3 2500

All variables 0

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