National Cranberry Cooperative Case Study Essay

1200 Words Jan 29th, 2014 5 Pages
National Cranberry Cooperative Case Study

1. How might transport vehicles be utilized more effectively? Should crews be scheduled differently on peak days?
 More crews should be scheduled in the bagging station during peak days
 The fourth bagging station should be utilized during peak hours (instead of just three of the four being used at a given time)
 An additional 2,667 bbls per 12-hour period could be processed with these changes
At receiving plant no. 1 (RP1), trucks would arrive randomly throughout the day, with a random amount of berries, anywhere from 20 to 400 bbls. In order to utilize transport vehicles more effectively, there should be crews scheduled differently on peak days. It only takes 5 to 10 minutes to unload a
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3 berries should actually be graded No. 2B
The installation of a berry grader would positively impact the cooperative’s income, while negatively impacting the farmers’ income. With the current system, 450,000 bbls. of berries are paid a premium of 50 cents per bbl, yet when the berries are used only about half of them are actually considered No. 3’s (berries with the best color). So basically, the cooperative is paying a premium on 225,000 bbls. more than it should be, and that worked out to about $112,500 in 1970. It would cost the cooperative $10,000 to install a berry grader, plus the cost of another full-time skilled operator, but it would still impact their income greatly. The farmers’ would probably prefer that the cooperative continue to grade the color using pictures as a guide, because they are being paid a 50 cent premium on about half of their No. 3 berries that should actually be considered No. 2B.
450,000 bbls. divided by 50% equals 225,000 bbls.
225,000 bbls. at 50 cent each is equal to $112,500 per year
Fixed cost: $10,000 for installation of berry grader
3. What is the impact of installing one new dryer? Two new dryers?
 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,