Professor Wang Xiayang
Case Writing –National Cranberry Cooperative
JESSIE ZHOU/KOBE LIU
STUDENT ID NO.:
I declare that this assignment is my own work, which all sources of reference are acknowledged in full and it has not been submitted for any other course.
Signature: Date: 10/10/30
NATIONAL CRANBERRY COOPERATIVE
What are the problems facing receiving plant No. 1 (RPI)? In February 1971, considered the present for purpose of this case, Hugo Schaeffer, vice-president of operations at the National Cranberry Cooperative(NCC), faces two primary problems that arise at receiving plant No.1(RP1) during the annual autumn cranberry harvesting season: (1)Trucks and drivers spend too much time waiting to unload process fruit at the receiving plant. (2) Overtime costs and absenteeism are out of control. There is also a secondary problem: half of the berries graded as top quality and awarded a 50-cent premium per barrel (bbl) are not top quality and do not deserve the premium.
What are the sources of the variability that NCC is subjected to? It is well known that variability can play a significant role in NCC. Indeed, the base case accounts for inter-day cariability in arrivals. (1)However, it assumes exactly 70 percent of all berries will be wet on each peak day. This effect is very important. Because most of the highest volumes ovvur early in the peak season, recognizing this effect in the analysis may reduce the need for new dryer cpacity. (2)Accounting for cariabilities in intra-day truck arrivals, percent age of berries arriving wet, and processing time is likely to add support to the need for additional drying capacity. (3)I think the major effect of these variabilities appearsis staffing issues, which are mentioned in the case. As we know, people are most important....
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