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National Cranberry Cooperative Case Study

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National Cranberry Cooperative

1. Analyze the current process.
Please see the Excel file.

2. On a busy day, what is RP#1’s current maximum throughput rate?
The separator line could process up to 450 bbls/hr. instead of 400 bbls/hr.
The other bottleneck for this question is dryer process.
So the maximum throughput rate should be:
600+450=1050 bbls/hr.

3. Assuming that processing starts at 7 am on a “busy” day, present the situation during such a day, by constructing an inventory build-up diagram for bins and trucks.
Demand rate=18000 bbls/12hr.=1500bbls/hr.
7:00 p.m. trucks stop coming

TOTAL INVENTORY = (450*12) bbls =5400 bbls EMPTY=5400/600=9 hr. 9+7:00P.M. =4:00A.M. BIN INVENTORY=3200 bbls (12-7)= 5 (450/75)=6 5*6=30trucks TRUCK INVENTORY=30*75=2250 bbls

4. What are the possible capital investments considered by NCC?
One of the possible capital investments considered by NCC was to buy some new equipment. NCC’s overtime costs were out of control and the growers were upset that their trucks and drivers had to spend so much time waiting to unload process fruit into the receiving plant. Will Walliston, the superintendent, thought that the way to avoid these problems was to increase their capacity by buying new equipment. However, in order to buy new equipment it was very important to move quickly since the purchasing and installation lead times are in excess of six months. Another possible capital investment considered was the installation of a light meter system for color grading. Using color pictures as a guide, the truckload of berries were graded according to color and classified as Nos. 1, 2A, 2B or 3, from poorest color (No. 1) to best (No.3). There was a premium of $1.50 per bbl. paid for No. 3 berries. Whenever there was any question about whether or not a truckload is No. 2B or

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