# L. Houts Plastics is a large - Expert Work

1.   L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the com-pany’s manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system?

L. Houts Plastics’ Charlotte Inventory Levels

Item Code#
Average inventory ( units)
Value ( \$/Units)
1289
400
3.75
2347
300
4.00
2349
120
2.50
2363
75
1.50
2394
60
1.75
2395
30
2.00
6782
20
1.15
7844
12
2.05
8210
8
1.80
8310
7
2.00
9111
6
3.00

2. Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,000 items in its inventory and has hired Joan Blasco Paul to manage its inventory. Joan has determined that 10% of the items in inventory are A items, 35% are B items, and 55% are C items. She would like to set up a system in which all A items are counted monthly ( every 20 working days), all B items are counted quarterly ( every 60 working days), and all C items are counted semiannually ( every 120 working days). How many items need to be counted each day?

3.  William Beville’s computer training school, in Richmond, stocks workbooks with the following characteristics:

Demand D = 19,500 units year

Ordering cost S = + 25 order

Holding cost H = + 4 unit year

a) Calculate the EOQ for the workbooks.

b) What are the annual holding costs for the workbooks?

c) What are the annual ordering costs?

5.  List the strategic objectives of aggregate planning. Which one of these is most often addressed by the quantitative techniques of aggregate planning? Which one of these is generally the most important?

6. Define chase strategy.

9. What are the advantages and disadvantages of varying the size of the workforce to meet demand requirements each period?

10. How does aggregate planning in service differ from aggregate planning in manufacturing?