Macpherson Refrigeration Limited

2152 words 9 pages
Case Study

“MacPherson Refrigeration Limited”

Mohamed Yehia Emam (S1500733)
George Gabriel George (S1501034)

Table of Contents

Table of contents Page 2 1. Introduction Page 3 2. Problem Statement Page 3 3. Performance Measures and Trade-Offs Page 4 4. Assumptions Page 5 5. Iterative Plan Page 5
5.1. Integer Programming Model Page 5
5.2. Integer Programming Model Considering Overtime Page 6
5.3. Integer Programming Model Considering Hiring/Firing Page 7 6. Conclusion Page 9

1. Introduction
In this case study, production planning of MacPherson Refrigeration Limited (MRL) for the next year is conducted. In order to
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Quantitative trade-off using this option is additional higher monthly cost which is $3.3; on the other hand, qualitative trade-off will be considered as decrease in the efficiency and morale of workers. In order to reflect effects of those qualitative measures, some assumptions and estimations will be made to change those intangible costs into tangible costs.
The third tool is changing the number of workers, namely hiring or firing them. Trade-offs of these options will be considered separately. First of all, considering the limited labor market, both due to negatively affected union relations and the worsened reputation of the firm, when firing is undertake it will be difficult to find new workers in the next months. In addition, morale and efficiency of remaining workers would be decreased. With the same approach above, effects of those changes will be reflected by some additional modifications in cost and working hour figures.
After making mentioned changes, all the plans are available to be compared by looking at numerical results, because by making estimations about intangible costs they would be reflected by more explicit costs. Those numerical results will be namely; number of fired/hired workers, number of firing/hiring operation, total cost, average number of workers and average inventory level. 4. Assumptions
Considering the business environment, there are some assumptions which need to be made in order to analyze the system and solve the