Mohawk Industries builds transmissions for a large automobile manufacturer. One of its transmission assemblies requires part #HD purchased from a supplier within the same industrial park. Because of the close proximity of its supplier, the lead me for part #HD is negligible. 

 

The demand for part #HD varies according to the orders received from the automobile manufacturer. The requirements schedule for the next periods is shown below:

Period:

Demand:

TOTAL:

This requirements schedule is considered fairly typical. Furthermore, the cost of placing an order with a nearby supplier is $ the purchase cost is $ and the holding cost fracon is per period. Mohawk is in the process of assessing different lotsizing policies. It is interested in several that have

been suggested.

Before it can decide among them, Mohawk wishes to test each heurisc to determine which one is best suited for part #HD Those heuriscs to be tested include

A EOQ as a Time Supply heurisc eg EOI

B LotforLot heurisc

C Least Unit Cost heurisc

D PartPeriod Balancing heurisc

E SilverMeal heurisc

Develop a replenishment plan for each heurisc A through E Calculate the total

costs and inventory turnover ratio.

Compare the replenishment strategies and performance of each heurisc A through E Explain how the cost components or demand for this problem impact the performance of each heurisc. Discuss why each heurisc performs well or poorly.

Which replenishment strategy would you recommend Mohawk Industries? Justify your recommend on using data from the problem and any other factors you believe are relevant.