*NEED HELP WITH 1, 2, and 3*DYNAMIC INVENTORY MODELSPLEASE WALK THROUGH WITH EXCEL IF POSSIBLE, PLEASE!Mohawk Industries builds transmissions for a large automobile manufacturer. One of its transmissionassemblies requires part #HD234, purchased from a supplier within the same industrial park. Because ofthe close proximity of its supplier, the lead me for part #HD234 is negligible.The demand for part #HD234 varies according to the orders received from the automobile manufacturer.The requirements schedule for the next 10 periods is shown below: Period 1 2 3 4 5 6 7 8 9 10 Total Demand 115 50 175 95 150 225 75 70 40 20 1,015 This requirements schedule is considered fairly typical. Furthermore, the cost of placing an order with anearby supplier is $85.00, the purchase cost is $65.00, and the holding cost fracon is 0.01 per period.Mohawk is in the process of assessing different lot-sizing policies. It is interested in several that havebeen suggested.Before it can decide among them, Mohawk wishes to test each heurisc to determine which one is bestsuited for part #HD234. Those heuriscs to be tested includeA. EOQ as a Time Supply heurisc (e.g. EOI)B. Lot-for-Lot heuriscC. Least Unit Cost heuriscD. Part-Period Balancing heuriscE. Silver-Meal heurisc1. Develop a replenishment plan for each heurisc (A through E). Calculate the totalcosts and inventory turnover ratio.2. Compare the replenishment strategies and performance of each heurisc (A throughE). Explain how the cost components or demand for this problem impact the performance ofeach heurisc. Discuss why each heurisc performs well or poorly.3. Which replenishment strategy would you recommend Mohawk Industries? Justifyyour recommendaon using data from the problem and any other factors you believe arerelevant.
*NEED HELP WITH 1, 2, and 3*
DYNAMIC INVENTORY MODELS
PLEASE WALK THROUGH WITH EXCEL IF POSSIBLE, PLEASE!
Mohawk Industries builds transmissions for a large automobile manufacturer. One of its transmission
assemblies requires part #HD234, purchased from a supplier within the same industrial park. Because of
the close proximity of its supplier, the lead me for part #HD234 is negligible.
The demand for part #HD234 varies according to the orders received from the automobile manufacturer.
The requirements schedule for the next 10 periods is shown below:
| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Total |
| Demand | 115 | 50 | 175 | 95 | 150 | 225 | 75 | 70 | 40 | 20 | 1,015 |
This requirements schedule is considered fairly typical. Furthermore, the cost of placing an order with a
nearby supplier is $85.00, the purchase cost is $65.00, and the holding cost fracon is 0.01 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 heurisc to determine which one is best
suited for part #HD234. Those heuriscs to be tested include
A. EOQ as a Time Supply heurisc (e.g. EOI)
B. Lot-for-Lot heurisc
C. Least Unit Cost heurisc
D. Part-Period Balancing heurisc
E. Silver-Meal heurisc
1. Develop a replenishment plan for each heurisc (A through E). Calculate the total
costs and inventory turnover ratio.
2. 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.
3. Which replenishment strategy would you recommend Mohawk Industries? Justify
your recommendaon using data from the problem and any other factors you believe are
relevant.
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