In one modification of the Pigskin problem, the maxi-mum storage constraint and the holding cost are based on the average inventory (not ending inventory) for agiven month, where the average inventory is defined as the sum of beginning inventory and ending inven-tory, divided by 2, and beginning inventory is before production or demand. Modify the Pigskin model withthis new assumption, and use Solver to find the optimal solution. How does this change the optimal productionschedule? How does it change the optimal total cost?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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In one modification of the Pigskin problem, the maxi-
mum 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 inven-
tory, 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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