Case Report: National Cranberry Cooperative
Fill in your name in the header. Please read the Assignment Collaboration Guidelines in Course Syllabus: Collaboration between groups is not allowed; however, if you hear something from some other group, please give a reference. Below, write your answers to Questions 1-4 (on BB/Cases). Your analysis should be based on the assumptions listed in the Syllabus. If you need to make additional assumptions to answer a question, clearly state them, logically defend them, and then proceed to answer the question accordingly. The idea is to answer the questions concisely. Double spacing is preferred, 1.5-line spacing is the minimum (consider the reader’s eye strain). 1. Analyze the current process. Using the process flow map (available on CTools) of the current process at Receiving Plant No.1, mark the capacity and utilization of each of the resources. Show the flows of wet and dry berries separately.
First we receive 18,000 barrels over a 12 hour period which leads to a 1,500 bbl/ Hr, Then 75% of 1,500 total berries per hour equal 1,125 bbl/Hr and the remaining 25% or 375 bbl/Hr are dry berries. While our Dumper is holding a capacity of 3,000 bbl/Hr and utilizing only the 1,500 bbl/Hr we are receiving. Those berries would then split up in the dry and wet storage bins. Dry bins have a capacity of 4,000 bbl/Hr which is 16 bins holding 250 bbl/Hr each. Whereas the wet bins kept a storage capacity of 3,200 with 8 bins holding 250 bbl/Hr each and 3 holding 400 bbl/Hr each. The dry berries would then go on to the 3 Destoners with a capacity of 1,500 bbl/Hr per each, which we only need one at the current rate of utilization of 375 bbl/Hr. After that the dry berries would join the Wet berries at the 3 Dechaffers with a capacity of 1,500 bbl/Hr per each, one Dechaffer is used for dry (1500 capacity) while the other two (3000 capacity) are set up for the wet and still utilizing the 375 dry berries and 1,125 wet berries respectively. After the Dechaffers the wet berries go straight to the 3 dryers whom can hold 200 bbl/Hr each with a capacity of 600 bbl/Hr and utilization of 600 bbl/Hr which is our bottleneck, leaving behind 525 bbl/hr. After that both the dry and wet berries would go to the 3 separators to be prepared to be bagged. The separators work at a capacity rate of 1,200 berries or approximately 400 bbl/hr per separator, but could only utilize the throughput rate of 975 total berries.
Bulk and Bag
Separators
C = 1,200 U = 975 Dryers C =600 U = 600 Destoners C =4,500 U =375
Kiwanee Dumpers C = 3,000 U =1,500
Trucks in
Queue
Bins 1-16 storage =4,000
Bins 17-27 storage =3,200
Dechaffers
C = 1,500 U = 375 Dry berries
375 bbl/hr
Wet berries
1,125 bbl/hr
Dechaffers
C = 3,000 U 1,125
Bulk and Bag
Separators
C = 1,200 U = 975 Dryers C =600 U = 600 Destoners C =4,500 U =375
Kiwanee Dumpers C = 3,000 U =1,500
Trucks in
Queue
Bins 1-16 storage =4,000
Bins 17-27 storage =3,200
Dechaffers
C = 1,500 U = 375 Dry berries
375 bbl/hr
Wet berries
1,125 bbl/hr
Dechaffers
C = 3,000 U 1,125

2. On a busy day, what is RP1’s current maximum throughput rate? 600 Wet berries per hour and 375 dry berries per hour leads to a maximum throughput rate of 975 Berries per hour.

3. Assuming that all of the operations at RP1 start 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.

Inventory
?
? 3,200

?
?
Inventory on trucks
Inventory on trucks

?
?
7pm

7pm

?

?

Time
Time

4. What are the possible capital investments considered by NCC? Quantify the costs and benefits of three of them: the fifth Kiwanee dumper purchased in 1980, and two other investments. What recommendations would you make to Mr. Schaeffer? Please be ready to discuss in class other factors that might influence your recommendations to NCC.

Sell back the dumper bought back in 1980 because it is not the bottleneck and maybe buy one or two more dryers.
Converting dry bins to wet bins.
Paying waiting truckers.