Here’s the problem, gang…
We now that the bottleneck in the process is the Drying unit. Using the diagram, we can assess: 1. TPT is 19,000*.7 wet barrels/12 work hrs in work day = 1108 wet bbls per day 2. The dryer unit can process 600 bbls wet cranberries per day
Looking at the process we know that there is a bottleneck at Drying unit: I. The capacity of the drying unit is 600 bbl /hr which is much lower than the required 1108 wet bbl/day we need. II. On an average day a total of 10,000 bbl is received out of which 7,000 bbl is wet. At an average processing rate of 600 bbl /hr it will take 11.67 hours to process. Assuming normal working day of 8 hours, there is an overtime of 3.67 hours for each member of the crew on each average working day. III. On a peak day a total of 19,000 bbl is received out of which 13,300 bbl is wet. At an average processing rate of 600 bbl /hr it will take 22.17 hours to process. Thus, there is an overtime of 14 hours.
Lack of drying capacity is one of the major reasons for the increase in overtime cost.

Another reason is the increase in percentage of wet cranberries. * Waiting time for trucks: Inventory build up = arrival rate – processing rate = 1108 bbl – 600 bbl = 508 bbl at this rate the wet bins will be filled in 3500/508 = 6.89 hours. At the end of the day (12 hours) there will be 450*12=5400 bbl in inventory. Out of this 3,500 bbl will be in bins and rest 1,300 bbl will be in trucks. It will take 1,300/600=2.17 hours to empty the waiting trucks. Thus, inventory will start building from 6.89 hours to 14.17 hours. The average waiting time will be (14.17-6.89)/2=3.64 hours. On an average there will be 1300/75 = 17.33 trucks waiting. Thus, the total waiting time will be 17.33*3.64 = 63.08 hours.

Ways to reduce the overtime cost and waiting time:
Install more drying capacity: Add 1 more dryer:
Overtime for each member on average day: On an average day a total of 10,000 bbl is received out of which 7000 bbl is wet. At an average processing rate of 800 bbl /hr it will take 8.75 hours to process. Assuming normal working day of 8 hours, there is an overtime of 0.75 hours (45 minutes) for each member of the crew on each average working day. A saving of 2.92 hours.
On peak day: On a peak day a total of 19,000 bbl is received out of which 13,300 bbl is wet. At an average processing rate of 800 bbl /hr it will take 16.65 hours to process. Thus, there is an overtime of 7.75 hours (a saving of 6.15 hours)
Waiting time for trucks: Inventory build up rate = arrival rate – processing rate = 1108 bbl – 800 bbl = 308 bbl at this rate the wet bins will be filled in 3000/250 = 12 hours which is exactly 12 hours, hence there will be no waiting line for the trucks.

Install more drying capacity: Add 2 more dryer: 1. In this case milling area will become the bottleneck which can process 1200 bbl per hour of both wet and dry. Thus, the effective processing rate will be =1200*0.7=840 bbl per hour. 2. Overtime for each member on average day: On an average day a total of 10,000 bbl is received out of which 7000 bbl is wet. At an average processing rate of 840 bbl /hr it will take 8.33 hours to process. Assuming normal working day of 8 hours, there is an overtime of 0.33 hours for each member of the crew on each average working day. Additional saving is just 0.42 hours. 3. On peak day: On a peak day a total of 19,000 bbl is received out of which 13,300 bbl is wet. At an average processing rate of 840 bbl /hr it will take 15.83 hours to process. Thus, there is an overtime of 7.83 hours. An additional saving of 0.75 hours

Given the additional savings from the second dryer are not enough and adding just one dryer solves the problem of waiting line, it is recommended to go ahead with just one dryer.