Complete the Following Problem

Mohawk Industries builds transmissions for a large automobile manufacturer. One of its transmission

assemblies requires part #HD$234,$ purchased from a supplier within the same industrial park. Because of

the close proximity of its supplier, the lead time for part #HD$234$ is negligible.

The demand for part #HD$234$ varies according to the orders received from the automobile manufacturer.

The requirements schedule for the next $10$ periods is shown below:

This requirements schedule is considered fairly typical. Furthermore, the cost of placing an order with a

nearby supplier is $$85\mathrm{.}00,$ the purchase cost is $$65\mathrm{.}00,$ and the holding cost fraction is $0\mathrm{.}01$ per period.

Mohawk is in the process of assessing different lot$-$sizing policies. It is interested in several that have

been suggested.

Before it can decide among them, Mohawk wishes to test each heuristic to determine which one is best

suited for part #HD$234.$ Those heuristics to be tested include

A$.$ EOQ as a Time Supply heuristic $($e$.$g$.$ EOI$)$

B$.$ Lot$-$for$-$Lot heuristic

C$.$ Least Unit Cost heuristic

D$.$ Part$-$Period Balancing heuristic

E$.$ Silver$-$Meal heuristic

To assist Mohawk in its examination of the policies, address the following: $1.$ Develop a replenishment plan for each heuristic $($A through E$).$ Calculate the total costs and inventory turnover ratio.

$2.$ Compare the replenishment strategies and performance of each heuristic $($A through E$).$ Explain how the cost components or demand for this problem impact the performance of each heuristic. That is$,$ discuss why each heuristic performs well or poorly.

$3.$ Which replenishment strategy would you recommend Mohawk Industries? Justify your recommendation using data from the problem and any other factors you believe are relevant. To assist Mohawk in its examination of the policies, address the following:

$1.(50$ points$)$ Develop a replenishment plan for each heuristic $($A through E$).$ Calculate the total costs and inventory turnover ratio.

$2.(15$ points$)$ Compare the replenishment strategies and performance of each heuristic $(\backslash ($ A $\backslash )$ through E$).$ Explain how the cost components or demand for this problem impact the performance of each heuristic. That is$,$ discuss why each heuristic performs well or poorly.

$3.(5$ points$)$ Which replenishment strategy would you recommend Mohawk Industries? Justify your recommendation using data from the problem and any other factors you believe are relevant.