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 $D_t$ 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.

$($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.

In addition, calculate the cost of a lot for lot policy and a fixed order quantity policy $($fixed

order amount is $2000).$ Show your results in the form of the Dynamic Lot Sizing tables.