Note: All references to the product mix model in the following problems are to the larger product mix model in this section.
In one modification of the Pigskin problem, the maximum storage constraint and the holding cost are based on the average inventory (not ending inventory) for a given month, where the average inventory is defined as the sum of beginning inventory and ending inventory, divided by 2, and beginning inventory is before production or demand. Modify the Pigskin model with this new assumption, and use Solver to find the optimal solution. How does this change the optimal production schedule? How does it change the optimal total cost?
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