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Operation supply managerment - Research Paper Example

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1. Summary On February 1971, Schaeffer, the VP of operations at NAtional Cranberry Cooperative reviewed receiving plant No. 1 and was faced by problems which were'nt solved yet. The trucks and drivers were said to spend too much time on unloading the berries while the rate of employee absences and overtime costs are getting higher…
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Download file to see previous pages They sell the said berries in bulk and bags. 2. Analysis Below is the process flow for wet and dry cranberries Assumptions: 70% of the berries are wet. The average wet berries arrival rate = 1050 bbls per hour [(18000/12)*70%] The average arrival rate of dry berries = 450 bbls per hour [(18000/12)*(30%] Receiving of cranberries- The berries are received at receiving plant No. 1. The average truck delivery load is 75bbls. Temporary Holding- 27 bins are being used for holding both dry and wet berries. 1-24 of them will be holding bins that will hold 250bbls of barriers each. 25-27 holds 400 bbls berries each. Total capacity: (250*24) + (400*3) 6000 + 1200 = 7200 bbls. Destoning – They have 3 destoning units, each having a capacity of 1500 bbls. Total Destoning Capacity: (1500 * 3) = 4500 bbls. Dechaffing - They have 3 dechaffing units, each having a capacity of 1500 bbls Dechaffing unit capacity: (1500 * 3) = 4500 bbls/hr Drying - They have 3 drying , each having capacity of 200 bbls Drying Unit capacity: (200 * 3) = 600 bbls. Milling – The berries are moved to separator building from RP1. 3 separator units are used, in which average capacity of each unit is 400 Total Milling capacity: (400 *3) = 1200 bbls Bulking - Berries are then loaded to the bulk trucks. There are 2 bulk stations and capacity of each station is 1000 bbls Total bulking capacity: (100*2) = 2000 Bagging - 8,000 bbls of berries per day are uniformly distributed over 12 hours starting 7am. Maximum capacity per hour: 8000 / 12 = 667 bbls It is assumed that processing will start at 7AM. The holding bins will continue to be filled at the rate of 1050 bbls for wet berries and 450 bbls for dry berries to the maximum capacities of holding bins. The holding bins that are capable to hold wet berries will be filled completely after 3.03 minutes (3200/1050) that will be at 10.03 AM. The trucks that carry wet berries will have to wait after that. At the same time the process will start from 11 am in this four hour time period (7 am to 11 am) the quantity of wet berries will be 4200 bbls (1050*4) and for dry berries it will be 1800 bbls (450*4). Holding bins are not capable to hold all bins so excess 1000 bbls will wait on arriving trucks. The process will start at 11 am for dry berries with 600 bbls/ hour that are higher than the rate of its arrival. The 1800 bbls of dry berries will decline at the rate of 150 bbls per hour. The process for wet berries will also start at 11 am with a rate of 600 bbls per hour that is less than its arrival rate. It will cause growing queue of trucks until 7 pm. It will cause 7800 bbls in system and 3200 in bins and rest will be in truck. The trucks continued to be unload until 2.40 am and process will be continued until 8 am. At the same time, to empty the next slot of berries, the remaining quantity of berries will be arrived. The total berries that will be processed are 600*12 = 7200 bbls. The total waiting hours for trucks will be as follow - Processing rate = 600 bbls/ hour Arrival rate = 1050 bbls/ hour Processing time for 3200 bbls of wet berries = 5.3 hours or 5.18 minutes It means next process will start at 3.24 pm. Total berries will be processed = 3200+ 2016 (3.36*600) =5216 Remaining berries will be on truck, it means trucks will have to wait for (12600-5216)*(15.24-10.03)/2/75 = 256. 5 truck hours [15.24 equal to 3.24 pm] Total number of trucks = 18.32 or 19 ...Download file to see next pagesRead More
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