Question: A company wants a high level, aggregate production plan for the next 6 months. Projected orders for the company's product are listed in the table.

A company wants a high level, aggregate production plan for the next 6 months. Projected orders for the company's product are listed in the table. Over the 6-month period, units may be produced in one month and stored in inventory to meet some later month's demand. Because of seasonal factors, the cost of production is not constant, as shown in the table in the template.

The cost of holding an item in inventory for 1 month is $4/unit-mo. Items produced and sold in the same month are not put in inventory. The maximum number of units that can be held in inventory is 250. The inventory level at the beginning of the planning horizon is 200 units; the inventory level at the end of the planning horizon is to be 100. The problem is to determine the optimal amount to produce in each month so that demand is met while minimizing the total cost of production and inventory. Shortages for any periods are not permitted, ending inventory level for each period should be non-negative.

Please solve using excel. Thank you!

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