Web Mercantile sells many household products through anon-line catalog. The company needs substantial warehouse spacefor storing its goods. Plans now are being made for leasing ware-house storage space over the next 5 months. Just how much spacewill be required in each of these months is known. However, sincethese space requirements are quite different, it may be most eco-nomical to lease only the amount needed each month on a month-by-month basis. On the other hand, the additional cost for leasingspace for additional months is much less than for the first month,so it may be less expensive to lease the maximum amount neededfor the entire 5 months. Another option is the intermediate approachof changing the total amount of space leased (by adding a new leaseand/or having an old lease expire) at least once but not every month.