Modify the Pigskin spreadsheet model in the following way. Assume that the timing of demand and production are such that only 70% of the production in a given month can be used to satisfy the demand in that month. The other 30% occurs too late in that month and must be carried as inventory to help satisfy demand in later months. How does this change the optimal production schedule? How does it change the optimal total cost? Then use SolverTable to see how the optimal production schedule and optimal cost vary as the percentage of production usable for this month’s demand (now 70%) is allowed to vary from 20% to 100% in increments of 10%.
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