Macpherson Refrigeration Limited

Read the case, and answer the following questions1.Search in the library (books on Operations Management or Production Management), to find the main components of the accumulate Production Planning problem and briefly describe which are pure strategies and mixed strategies to solve this problem.The aggregate demand is the total demand for every last(predicate) products/ function produced by a drudgery facility without considering size, models, etc., usually there are significant seasonal variations. The objective of the Aggregate Production Plan is to manage payoff in order to meet the aggregate demand, matching capacity with demand fluctuations.The main components of APP are external (Market Demand, Economic Conditions, Raw Material Availability and Competitors Behaviors) and midland (Production, Workforce train, Inventory Level, Subcontracting, Backlog Policy, Physical Plant Capacity, Union Agreement, Capital Limit, among others).The mentioned components can be modified to cr eate production strategies which can be utilize to this problemPure strategies Considering one variable at a time to demand fluctuation 1.Varying Workforce Level (Hiring or Firing). 2.Varying Production Rate (extra time/ distance of Work Hour) 3.Varying Inventory Level (High or Low).Mixed strategies Considering two or more variables at a time to demand fluctuation 1.Varying both Workforce Level and Inventory 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 Labour Cost$10.50/hr-worker Overtime Labour Cost1.5 times the regular hourly rate $15.75/hr-worker Hiring Costs$1,800/worker Layoff Costs$1,200/worker Inventory Holding Costs$8/app-calendar month Initial capacity13,000 app/month Beginning Inventory240 app3) What are the main advantages and disadvantages of each of the actions (page 2, item 6) available to the compa ny to meet demand? How can these actions be combined?1.Building inventory to meet peaks trade 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 pay back high holding costs.2.Using overtime No inventory carrying costs. Workforce held just to meet average monthly requirements. XExcessive overtime might 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 import down the formulas to incorporate the production flow balance. A similar flow balance can be obtained for workers.There are also for mulas to include all the costs involved. Although you may discuss these questions with your team, you must submit your work individually.