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Will the storage limit be ever reached in any month

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Pigskin must decides how many footballs to produce each month for 6-month planning horizon. Monthly demand must be satified on time. Set a model to determine the production plan for next 6 months which incurs the least total cost.

1. Complete the spreadsheet model with appropriately named ranges. Based on the model, how should you plan the production in next 6 months? What is the minimal total cost?

2. If 6-month rolling planning horizon is adopted, we hope the forecast errors in month 5 and month 6 will impact very limited on month 1 production. Do the test, and comment on whithin what error range, the 6-month rolling planning horizon is good to use.

3. At the current inventory cost of 5%, will the storage limit be ever reached in any month? If not, at what inventory cost % will the storage limit be reached?

Reference no: EM131329362

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