First, include two more months so that the planning horizon is now $8$ months. You have to assume and values for the production costs, production capacity, demand and storage capacity for months $7$ and $8($for example you can just use the values of these variables in month $6).(5$ points$)$ Has this modification changed the optimal production in month $1($from the book this was $5,000)(2\mathrm{.}5$ points$).$ Do not forget to provide your spreadsheet showing your results.

Second, reduce the planning horizon to $4$ months. $(5$ points$)$ Has this modification changed the optimal production in month $1($from the book this was $5,000)(2\mathrm{.}5$ points$).$ Do not forget to provide your spreadsheet shoMultiperiod production model

Input data

Initial inventory $5000$

Holding cost as $\%$ of prod cost $5\%$

Month Month $1$ Month $2$ Month $3$ Month $4$ Month $5$ Month $6$

Production cost$/$unit $$12\mathrm{.}50$ $$12\mathrm{.}55$ $$12\mathrm{.}70$ $$12\mathrm{.}80$ $$12\mathrm{.}85$ $$12\mathrm{.}95$

Production plan

Month $123456$

Units produced

Production capacity $300003000030000300003000030000$

On hand after production

Demand $100001500030000350002500010000$

Ending inventory

Storage capacity $100001000010000100001000010000$

Summary of costs

Month Month $1$ Month $2$ Month $3$ Month $4$ Month $5$ Month $6$ Totals

Production costs

Holding costs

Totalswing your results.