Note: Please show all the excel formulars needed including the cell references and constraints for the solver. the two months has already added, please answer in details. this is the second time asking this question cos the first answer was not right and not in detail.

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). Has this modification changed the optimal production in month 1 (from the book this was 5,000) . 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) (2.5 points). Do not forget to provide your spreadsheet showing your results.

Multiperiod 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 Month 7 Month 8 Production cost/unit $12.50 $12.55 $12.70 $12.80 $12.85 $12.95 $12.95 $12.95 Production plan Month 2 3 4 5 6 7 8 Units produced Production capacity 30000 30000 30000 30000 30000 30000 30000 30000 On hand after production Demand 10000 15000 30000 35000 25000 10000 10000 10000 8 Ending inventory C Storage capacity 10000 10000 10000 10000 10000 10000 10000 10000 Summary of costs 4 Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Production costs 6 Holding costs Totals 0