PLEASE ANSWER B AND C ON PRIORITY

Nozone, Inc., a manufacturer of Freon recovery units (for automotive air conditioner maintenance), experiences a strongly seasonal demand pattern, driven by the summer air conditioning season. This year Nozone has put together a 6-month production plan, where the monthly demands Dt for recovery units are given in the table below. Each recovery unit is manufactured from one chassis assembly plus a variety of other parts. The chassis assemblies are produced in the machining center. Since there is a single chassis assembly per recovery unit, the demands in the table below also represent demands for chassis assemblies. The unit cost, fixed setup cost, and monthly holding cost for chassis assemblies are also given in this table. The fixed setup cost is the firm's estimate of the cost to change over the machining center to produce chassis assemblies, including labor and materials cost and the cost of disruption of other product lines. t 1 2 3 4 5 6 Dt 1,000 1,200 500 200 800 1000 ct 50 50 50 50 50 50 At 2,000 2,000 2,000 2,000 2,000 2,000 ht 1 1 1 1 1 10 (a) Use the Wagner-Whitin algorithm to compute an "optimal" 6-month production schedule for chassis assemblies. (b) Comment on the appropriateness of using monthly planning periods. What factors should influence the choice of a planning period? (c) Comment on the validity of using a fixed order cost to consider the capacity constraint at the machining center