National Cranberry Cooperative Case

Thus, from the above calculation, it can be exhibited that trucks have to wait to unload after 10.03 am for total 256.5 truck hours. The maximum number of trucks that will wait in a day will be 14.

3. Assuming that processing starts 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.

B. 1. The impact of costs on the decision to move forward with the new Maui Sandal line is as follows: As the production continues, the hours needed for each batch, or individual pair, will begin to decrease. By continuing to produce this line the total labor costs will continue to decrease, but most likely, at a slower rate as more sandals are produced. This data can help the company decide employment levels, capacity, costs, and their pricing of this particular merchandise in the open market. The company predicts that it will take 1,000 labor hours for production to complete for the first batch, with 50 total batches between month 1 and month 4.

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

In the same way should be treated cost of $1 million related to dismantlement of the existing manufacturing operation. According to the ASC 420-10-24-14, this cost

Addition of two new dryers implies the increased capacity for the drying station. They add an additional capacity of 2*200bbls wet berries per hour.

Webmasters.com has developed a powerful new server that would be used for corporations’ Internet activities. It would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 10% of the year's projected sales; for example, NWC0 = 10%(Sales1). The servers would sell for $24,000 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 3%. The company’s

 Each additional dryer will increase the amount of water-harvested berries that can be processed by 200 bbls. per hour for berries loaded to bulk trucks,

With failure costs some of the costs would be equipment break downs and spills. Our equipment costs 3 million dollars so we don’t want to replace it for at least 10 years. The routine maintenance for the equipment is $500,000 a year. The cost for the spills is a total of $120,000 a year. That includes $50,000 for the training classes on spill prevention and $70,000 for the salary of two new spill prevention workers.

: Total capacity of 5 dumpers = 450 (barrel/hr) * 5 (dupms) = 2250 barrels/hr

In order to remedy the backlog at the Dryer area, it is recommended that one (1) extra Dryer be purchases, and not two (2) as was suggested by Will Walliston. Since the Separators (capacity of 1,200 bbls) are too big and expensive to improve upon or replicate, NCC should increase the capacity of the Dryer process so 1,200 Wet Berries (double) can be passed on to the Separators instead the current 600 bbls (filling up its capacity with Wet berries is ideal since Dry Berries can sit overnight).

Approximately 25% of the shipments to the plant arrive in farmer-owned trucks. These shipments vary in size from 50 to 200 hogs. The farmer’s scheduled delivery affects the overall hogs supply, and the plant is heavily dependent on the farmers schedule accuracy.

Costs Incurred by Irving Equipment would be that of Investigation along with paying for the Insurance of 214 tonnes of equipment. Depending upon NB

the same time, and a minimum shift length. This scheduling process could also ensure that no

The retail company has two upcoming fashion shows that they can be involved in. One is in New York and will be a two day long project. The price for this fashion show is going to be $3,000 more than the second project that would be located in Chicago. Each fashion show is going to bring in the same amount of