Submitted by: Submitted by mjkrakow18
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Words: 2728
Pages: 11
Category: Business and Industry
Date Submitted: 03/24/2013 02:51 PM
Case Title: MacPherson Refrigeration Limited
Name and ID:
Who: MacPherson Refrigeration Limited, Linda Metzler (Production Planning Manager)
What: How to optimize Yearly Production Planning
Why: Due to the expanding company growth, as well for financial gain/optimization
When: New Aggregate plan due: October 31, 20X1
Implementation new plan: January 1, 20X2 – December 31, 20X2
A. Issues
Immediate Issues
1. Greater product line leading to a buildup in inventory stock which costs more money to store
2. Limiting Hiring and Layoffs to meet with Peak Demand
3. Limiting Overtime requirements to meet demand as well as keep worker morale up.
Basic Issues
1. Ongoing fluctuation in demand
2. Reducing company costs while retaining a high company status and repertoire with employees.
B. Case Data Analysis
Causes and Effects
Every year in September, MacPhersons Refrigeration Limited (MRL), creates a forecasted production
plan for the coming year. In doing so, this helps their business organize production and employee
projected costs for that year. The aggregate plans that are developed each year are used to minimize
costs (such as lowering inventory storage costs, layoff costs, hiring/training costs, and overtime) while
increasing employee morale (which increases production quality)
As these shipment forecast numbers are only but forecasts of what could happen, they are still subject
to change. This being said, the presented schedule could drastically change depending on consumer
demand.
Constraints and Opportunities
Constraints
Unionized contract workers who are under a two year contract since February of the previous
year pose a constrain because if employees are unable to be laid off before the end of the
contract, they are a unnecessary expense to MRL
The hiring and Layoff cycles would affect the quality of work in which each employee
demonstrates. This will also limit the learning curve of the company to increase the...