Chapter 4.17, Problem 8P

Explanation of Solution

Finding optimal solution:

IRS can rent computers for one, two or three months at a rent of $100, $180, $250 respectively. The excel Solver is used to minimize total expenditure. Follow the given below steps,

Step 1:

Enter the required data in Excel worksheet. Create columns of month 1, month 2 and month 3 and computers in hand. Column C, D, E are initially blank.

For column F, enter Formula $\text{=C2+D2+E2}$ in cell F2.

Enter formula $\text{=C3+D3+E3+D2+E2}$ in cell F3. Similarly, in F4 and copy till the end.

The excel worksheet is given below,

Step 2:

Select Excel Options. Go to Add-Ins. Click on manage to get a list of available Add-Ins. Add Solver-Add In from the options.

Step 3:

Select $\text{Data}\to \text{Solver}$