Case 3: The Tireless Rent-a-Car Company operates a fleet of rental cars in Metro Manila. The company has forecast its demand for rental cars for the...

3,000

The costs include lease payments to the manufacturer and standard maintenance and repair expenses. A lease may be taken out in any month. The manufacturer has certain restrictions: at least 60 percent of the cars leased must be on five-month lease, and no more than 20 percent can be on the three-month lease.

On September 30, the fleet consists of 300 cars. For 100 of these, the lease expires at the end of October; the lease on an additional 100 expires at the end of November; and the lease for the remaining 100 expires at the end of December. Premier would like to have between 300 and 350 cars remaining in the fleet at the end of March (after returning leased cars that are due to be returned that month).

Tireless would like to minimize its leasing costs. Formulate a linear programming model to solve this fleet planning problem.