Cranberry National Case

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. Mark the capacity and utilization of each resource in the process flow diagram at the end of this document. Briefly describe how you calculate the capacity and utilization here. [20 points] Refers to the picture in attached files. 2. Enter your answer and supporting arguments for question 2 here. [10 points] The daily maximum through put rate on a busy day is: * Wet berries: 600bbl * + Dry berries: 375bbl * = Total berries: 975bbl * x 22hours * = 21.450bbl/day The maximum production per day is about 21.450bbl If we just process about 18.000bbl, the effective through put rate in percent is about: 18.000 x 100 / 21.450 = 83,916% so 83.92%. 3. Enter your answer and supporting arguments for question 3 here. [30 points] Refers to the Excel document in attached files.

4. Enter your answer and supporting arguments for question 4 here. [40 points]
There are 3 possible capital investment moves: * We can sell 2 Kiwanee dumpers by reducing the capacity to 1800. Actually, we only nedd 1500 bbl/h.
Dry berries: (375 bbl/h)/ 75 bbl = we need 5 trucks/h
Wet berries: (1125 bbl/h)/ 75 bbl = we need 15 trucks/h

In total: trucks required = 20/h trucks unbuding capacity = 24/h To insure that the trucks drivers have no waiting times, the company will save up a lot of money for hiring both the driver and truck while the business will earn money from the two Kiwanee dumpers’ sale. * We can double the capacity of the dryer (600 bbl/h to 1200 bbl/h) Old utilization: (1125 bbl/h x 100) / 600 = 187,5 % New ulitization : (1125 bbl/h x100) / 1200 = 93.75 % * If Mr Shaffler doesn’t agree with the idea of the installation of the hight meter system, they have to buy an additional separating machine. Below, three calculations to show you our thinking: Before the dryer modification: ((600+375) x100) / 1200 = 81.25 % After the dryer modification: ((1125+375) x100) / 1200 = 125 % The additional dryer: ((1125+37) x100) / 1500 = 100% There are two different ways: on a busy day we can be on a full capacity, and on a normal day the utilization can slow down.