National Cranberry Cooperative

Topics: Investment, Rate of return, Capacity utilization Pages: 3 (1348 words) Published: October 22, 2014

Case Report: National Cranberry Cooperative
Fill in your name in the header. Please read the Course Syllabus for guidelines on collaboration in assignments: Below, write your answers to Guiding Questions 1-4. The case is due at the beginning of class on January 29 (Wednesday). Please submit only one document per group. We will discuss the answers in class. You may want to print out your answers and charts for your reference during the class discussion. Some additional information about National Cranberry follows. Not necessarily all of this information is relevant to your answers. You may assume that: On an average “busy” day 18,000 bbl arrive over the 12-hr period (7 am to 7 pm). This is based on a typical busy day in September. The process is approximately a “continuous flow” type.

Wet berries are 75% of all berries.
Holding bins 17-24 are dedicated to wet berries.
Capacity of the dumpers is 3,000 bbl / hr (it takes on average 7.5 minutes to dump a truck, a truck holds on average 75 bbl so, from Little's Law, each dumper will take 600 bbl/hr). Drivers are paid $10/hr. Rates for other employees are given in the case. 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. Questions

1.Analyze the current process. Using the process flow map (given below) of the current process at Receiving Plant No. 1 (RP1), mark the capacity and utilization of each of the resources. Show the flows of wet and dry berries separately. On an average busy day, 18,000 bbl arrive over the 12-hr period. Thus, we can say that 1,500 bbl arrive every hour. Since 75% of the berries are wet berries, 1,125 bbl of wet berries and 375 bbl of dry berries arrive every hour. These berries are dumped into 5 Kiwanee Dumpers that take 600 bbls per hour each. And then, dry berries and wet berries are divided. Dry berries go into bins 1 to 16 and wet berries go into bins 17-27. Since bins 1...
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