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Rent'R Cars is a multisite car rental company in the city. It is implementing a new "return the car to the location most convenient for you" policy to improve customer service. This policy requires the company to frequently move cars around the city to maintain required levels of vehicle availability.

The supply and demand for economy cars and the total cost of moving these vehicles between sites are shown below.

Find the solution that minimizes moving costs using Microsoft Excel.

Note: Leave no cells blank, and use zero (0) whenever required.

Answer :

To find a solution that minimizes moving costs using Microsoft Excel, you can use the Solver add-in.

Here's a step-by-step guide on how to do it:

1. Open your Microsoft Excel spreadsheet and make sure you have the Solver add-in enabled.

If it's not enabled, you can go to "File" > "Options" > "Add-Ins" and select "Solver Add-in" from the list.

2. Set up your spreadsheet with the necessary data. In this case, you need to have a table showing the supply and demand for economy cars, as well as the cost of moving the vehicles between sites.

Make sure the supply and demand values are entered in separate cells, and the moving costs are entered in a separate table.

3. Define the variables. In the Solver add-in, you need to specify the cells that represent the number of cars to be moved between sites as your decision variables.

These cells should be the ones you want Solver to adjust in order to minimize the moving costs.

4. Set the objective function. In this case, the objective is to minimize the total cost of moving the cars.

You can achieve this by selecting the sum of the moving costs as your objective function.

5. Define the constraints. You need to set constraints that ensure the supply and demand for economy cars are met.

For example, the sum of the cars moved from each site should be equal to the demand at that site, and the sum of the cars moved to each site should be equal to the supply at that site.

6. Run Solver. Once you have set up your variables, objective function, and constraints, you can run Solver.

It will find the optimal solution that minimizes the moving costs while satisfying the supply and demand requirements.

7. Interpret the results. Solver will adjust the values in the decision variable cells to minimize the moving costs.

The result will show you the optimal number of cars to move between sites.


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