Cranberry and Berries Essay

1291 Words6 Pages
National Cranberry Cooperative Case
Political Science
Junki Hong
To begin with, this assignment is done with Kim Seo Yeon (20100472, Sociology). National Cranberry Cooperative Case is the study done by the Harvard Business School about a process of warehousing from the delivery and arriving of cranberry to a manufacturing in the warehouse. National Cranberry Cooperative was an organization formed and owned by growers of cranberries to process and markets their berries. The handling of process fruit RP1 was highly mechanized. The process could be classified into several operations; receiving and testing, dumping, temporary holding, destroying, dechaffing, drying separation and bulking and bagging. The objective of the total
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In addition, wet bin capacity is 3,200 barrels so, according to hourly inventory increasing rate, after passing 5.25 hours, trucks should wait to unload berries. Moreover, overworks should be done for 22.2 hours because workers should dry 13,300 barrels of the berries, but the drying capacity is only 600 barrel per hour besides the arrival rate is 1,210 barrels per hour.
To solve this problem, I would recommend to add dryers ($25,000 per each and capacity increases 200 barrels per each) or wet bins ($5,000 per each and capacity increases 250 barrels per each) for short-term. We can suggest three options to solve this matter. First, we can add no dryers but convert 15 bins. Second, we can add a dryer and convert 6 bins too. Third, we can add 2 dryers, not to convert any bins. As first option, we need only additional cost of $75,000, which is calculated by $5,000 x 15 bins. By practicing first option, the wet bin storage increases to 6,950, so we can cover all the arrivals of the berries this is done for not to make trucks to wait. In the second option, when we add a dryer, we can handle 800 barrels per hour in drying process and we can reduce the overworking time from 22.2 hour to 16.6 hour. (13,300 barrel / 800 barrel equals to 16.6 hours per a day) We can estimate overtime saved cost and it is closely related to labor cost. Labor cost

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