Macpherson

MIDDLE EAST TECHNICAL UNIVERSITY

IE324 - PRODUCTION AND SERVICE OPERATIONS PLANNING II

Case Study

“Macpherson Refrigeration Limited”

Burcu Yüzüak Fatoş İlbi Onur Yılmaz

June 2011, Ankara

Table of Contents

PAGE Table of Contents ............................................................................................................. 1.Introduction …………………..………………………………………………………………………………………… 2. Problem Statement …................................................................................................... 3. Performance Measures and Trade-offs ....................................................................... 4. Assumptions ……………………........................................................................................... 1 2 2 3 4

5. Iterative Plans …………................................................................................................... 4 5.1. Integer Programming Model ……………………………………………………………………… 5.2. Integer Programming Model Considering Overtime …………………………………… 5.3. Integer Programming Model Considering Hiring/Firing ……………………………. 6. Conclusion ……………………………………………………………………………………………………………… 5 6 7 9

7. Appendix ….……………………………………………………………………………………………………………… A-I

1

1. Introduction

In this case study, production planning of Macpherson Refrigeration Limited (RML) for the next year is conducted. In order to provide some background information about the company and the related production plant; there are some points to be mentioned. First of all RML is a relatively large company with a sales of about $28.5 million and for the last ten years they are in the business of producing consumer refrigeration. Secondly, the production plant which this production planning is related has an increased efficiency in the last years through process design and assembly technologies.

In this report, process and the results of this case study is presented. In the first part, problem which is going to be studied is presented....