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MacPherson Refrigeration Ltd (THE AGGREGATE PLAN (Estimated expenses…
MacPherson Refrigeration Ltd
INTRODUCTION
Background
created in 1980s
Manager: Linda Metzler
minimize the cost related to the fridge's production
exhibits
constant workforce
varying workforce
mix of workforce
THE PLANNING PROCESS
to construct an aggregate production plan
THE AGGREGATE PLAN
The Stratford plant had the physical capacity to make only 13,000 appliances per month
MRL employed 160 hourly paid unionized production workers
Estimated expenses
hiring
training
related expenses
severance
other layoff expenses
to hold an appliance in inventory for a month during the next year
all worker hours scheduled in a particular month would contribute directly to output in the same month
three basic tools to meet demand fluctuations
building inventory to meet peaks
using overtime
hiring and laying off workers
THE ALTERNATIVES
The production level and the workforce could be held constant throughout the year at a level sufficient to meet the peak demand period
Exhibit 1
The production level could vary to meet demand with a constant workforce by the use of overtime in peak months and restricted output in slow months
Exhibit 2
Some of the potential problems could be overcome by a strategy that met demand by varying workforce levels
Exhibit 3
THE DECISION
Help L. Metzler to come up to an optimal solution cost for the next year
Exhibit 4
MM5004 Operations Management
DIONISIUS SUNDORO
(29117029)