Example 1

I
T
R

75000
0.75
100000 per year

Example 2
R
T
I

1500 per day

0.014 per day
21

R
T
I

mins per d T in minutes

1440
20.16

5000 kg/week days/week avg meat flow time

0.5 per week
7
3.5
2500 kg

Example 3 Walmart
R = COGS
352,488
T
0.119885
I
42258
Example 3 Dell
R = COGS
20,000
T
0.01955
I
391

43.758

1.0557 in weeks

Costco
91,950
0.089995 32.84802
8275
Compaq
25,263
0.079286 4.281439 in weeks
2003

Inventory turnover (# of time avg inventory is sold in an interval of time)

=1/T
51.1509
12.61258

Production Overview
1 Bean Cleaner
2 Roaster
3 Winnower
4 Melangeur
5 Conche 1 bottleneck
6 Conche 2
7 Tempering
8 Molding

Cleaner
Winnowing

As is
Capacity
4,546.6
986.7

833.28

Yield loss
96%
74%

Increase in output at 62% of nibs/day

153.4
Increase in output to get 62%
247.4
each 1400kg is = $12000 in margin -> inc in sales
$2,120.6
cost
300000
Payback is cost div by inc in sales
$141.47
Can do even better by adding ball mill plus 3rd shift at step 2, 4, and 7/8
Bottlenecks can be improved by
1) Equipment purchase
2) Mix changes
3) Mul shifts
4) Outsourcing
5) Quality control prior to bottleneck

1 Bean Cleaner
Machine
200 kg
Time
15 min
Capacity
12.8 kg/hour
Shift per day
8 hours
Shift per week
7 days
Store 2 weeks supply on site while others in nearby warehouse
Beans pull on weekly schedule

Machine
Avg Time

2 Roaster
250 kg
1.25 hours

96%
0.25
4,546.6

90

Cooling time
15 min
Shift per day
8 hours
Shift per week
7 days
Use within the next few days

Max Cap
Each batch
Nibs recover
Shift per day
Shift per week

3 Winnower
450 kg/hour
185
333 kg/hour
8 hours
7 days

Max cap
time

4 Melangeur
115 kg
1.25 hours

Shift per day

Shift per week

0.25

250

8 hours
7 days

0.74

x2

5 Conche
x2
Each cap
1400 kg
avg time
50 hours
Ratio for semi s
62%
Nibs
850 kg
Other (sugar)
550 kg
Time to process
To get target mi
Total time avg
Shift per day
Shift per week

Cap
Typically
Shift per day
Shift per week

12
50 hours (ignore)
60
24 hours
7 days

6 Tempering
200 kg/hour
140 kg/hour
8 hours
7 days

Molding
Time after mold

20 min

7 Packaging
8 Quality control
9 Current Capacity and Expansion Options
Max monthly ca
40,000 kg

to match the pace of the molding

x2

to box

cap in conches
29 conches
Output range 26 - 29
conches
New conche
time
airing time
new total time

1400 kg
3 hours compared to 50 hours
10 hours
15 hours

New conche cost 300000

New Melangeur
50000
Outsource molding

To be

new bottleneck

lowest cap

per hour
nibs per day

986.7
per min

per hour

2,664.0
recoverery rate

1472

16 hours per day

833.28

1388.8

e pace of the molding

16 hours per day

New capacitiy
2083.2

4166.4

Quarter
4
8
12
Avg

Input Rate (tons/mon)

3600
4800
600
3000

Inventory (tons)
4
2400
8
9600
12
0
Avg
4000
By Little's Law
capicity
R
I
T

3000 per month

4000
1.3 per month

Under FIFO, use 9600

capicity
R
I
T

3000 per month

9600
3.2 per month

If firm operates as if max inventory/month is 2400 due to inventory cost

capicity
R
1.25 per month
I
3000
T
2,400.0 per month
150
600
1050

787.5

2400

150