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Management of Sundown Rent-a-Car has decided that perhaps the cost during the six-month period is not the appropriate cost to minimize because the agency may still be obligated to additional months on some leases after that time. For example, if Sundown had some cars delivered at the beginning of the sixth month, Sundown would still be obligated for two additional months on a three-month lease. Use LP to determine how many cars should be leased in each month on each type of lease to minimize the cost of leasing over the entire life of these leases.

Management Theories, Management Studies

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