1. Consider the following data on demand for a product over the next 12 months: It is now January 1, and there is no inventory on hand. The production rate is very much higher than the demand rate and all production (if any) takes place at the beginning of the month. Fixed cost for a production run is $3000, the approximate value of the product is $400 per unit, and the carrying cost is based upon an annual rate of 36%. Plan the production to meet demand for the upcoming year using each of the following methods. In each case, compute the total variable costs (setup costs and holding costs). 1) A single production run in January. 2) Lot-for-lot production, i.e., produces in each month an amount sufficient to meet demand for that month. 3) Production is based on keeping each lot as close as possible to an EOQ value computed from average monthly demand. 4) The Silver-Meal heuristic. 5) The Least Unit Cost heuristic. 6) The Part Period Balancing heuristic. 7) Which method yields the best plan