Macpherson Refrigeration Limited

Read the case, and answer the following questions1.Search in the library (books on Operations Management or Production Management), to gravel the main components of the integrality Production Planning worry and briefly draw off which are pure st countgies and mixed strategies to solve this problem.The aggregate get is the add up make for all products/services produced by a production speediness without considering size, models, etc., usually there are significant seasonal variations. The objective of the Aggregate Production Plan is to manage production in order to play the aggregate demand, matching capacity with demand fluctuations.The main components of APP are outside (Market Demand, Economic Conditions, Raw Material Availability and Competitors Behaviors) and internal (Production, manpower Level, stock list Level, Subcontracting, Backlog Policy, Physical Plant Capacity, Union Agreement, Capital Limit, among others).The mentioned components can be modified to create p roduction strategies which can be applied to this problemPure strategies Considering one variable at a time to demand fluctuation 1.Varying Workforce Level (Hiring or Firing). 2.Varying Production Rate (Overtime/ continuance of Work Hour) 3.Varying stock-taking Level (High or Low).Mixed strategies Considering two or more than variables at a time to demand fluctuation 1.Varying both Workforce Level and line of descent Level. 2. Varying both Production Rate and Inventory Level.2.Find the following parameters of the problem (specify the units involved)Productivity450 app/worker-year Expected for next year 480 app/worker-year Regular undertaking Cost$10.50/hr-worker Overtime Labour Cost1.5 times the regular hourly rate $15.75/hr-worker Hiring be$1,800/worker Layoff Costs$1,200/worker Inventory Holding Costs$8/app-month Initial capacity13,000 app/month Beginning Inventory240 app3) What are the main advantages and disadvantages of distri only ifively of the actions (page 2, item 6) available to the company to meet demand? How can these actions be combined?1.Building inventory to meet peaks Protection against unforeseen demand changes. Inventory accumulation will be drawn down during peak demand periods. XIn periods of low demand, inventory would be accumulated and it would generate high safekeeping costs.2.Using overtime No inventory carrying costs. Workforce held just to meet fairish monthly requirements. XExcessive overtime exponent lead to lower efficiency. XRestricted production might promote poor work habits and low morale.3.Hiring and laying off workers The cheapest alternative. XUnion relations and employee morale could be adversely affected by frequent layoffs. X Hiring and training employees would be a problem (limited labour market).4) Replicate in an Excel spreadsheet, page 4 (Exhibit 1). Its not just to copy the spreadsheet, but to write down the formulas to incorporate the production flow balance. A standardised flow balance can be obtained fo r workers.There are overly formulas to include all the costs involved. Although you may discuss these questions with your team, you must lay out your work individually.