Question: Add on this last part to the previous problem solved: In addition to the lease costs described for the problem, suppose that it costs Compu
Add on this last part to the previous problem solved:
In addition to the lease costs described for the problem, suppose that it costs CompuTrain $ extra in labor costs whenever the company replaces their existing computers with new ones. What effect does this have on the formulation and solution of the problem? Which of the two leasing contracts is optimal in this case? Round your answers to the nearest dollar.
The cost in dollars on each arc increases by $
The optimal plan under both leasing options is to replace the equipment at the beginning of years
However, leasing option or option
provides the lowest total cost in dollars of $
$ and is therefore the preferred alternative.
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