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National Cranberry Case Study

Question 1:
Analyze the current process. [Using the process flow map, available in the Excel file associated
/with the assignment, of the current process at Receiving Plant #1, mark the capacity and
utilization of each of the operations. Show the flows of wet and dry berries separately.]

Part 1: Receiving Fruits:
In a 12 hour duration from 7:00am – 7:00pm 18000bbls of cranberries are delivered.
Total demand rates = 18000/12 = 1500bbls/hr
Total wet berries = 18000*0.7 = 12600
Total dry berries = 18000*0.3 = 5400

Part 2: Loading them in Kiwanee dumpers:
Average time the truck takes to dump into kiwanee dumpers: (7+8)/2 = 7.5 mins
Average truck delivery = 75bbls/truck
Capacity of each Kiwanee dumper = 600bbls/hr
Number of kiwanee dumpers = 5
Total capacity of dumpers = 600*5= 3000bbls/hr
Utilization rate = demand rate/capacity rate = 1500/3000 = 0.5 = 50%

Part 3: Bins
Dry bins : 1-16
Capacity of each bin = 250bbls/hr
Total capacity of dry bins = 16*250 = 4000bbls/hr

Wet bin : 17-27
Bins 17-24 have capacity 250bbls, and bins 25,26,27 have capacity of 400bbls/hr
Total capacity : (250*8)+(400*3) = 3200bbls/hr

Part 4: Destoning
There are 3 destoning units, each of capacity 1500bbls/hr
Total capacity : 1500*3 = 4500bbls/hr
Utilization rate : demand rate/capacity rate = 450/4500 = 0.1 = 10%

Part 5: Dechaffing
There are 3 dechaffing units, each of capacity 1500bbls/hr.
2 of these units are for wet cranberries and 1 unit is for dry cranberries.

Total capacity of dechaffing unit = 1500*3 = 4500bbls/hr
In the dechaffing unit, the berries come from dry as well as wet bins, so its arriving rate =
(1050+450)bbls/hr.
Utilization rate = demand rate/capacity rate = (1050+450)/4500 = 33.34%

Part 6: Drying
There are 3 dryer units, each of capacity 200bbls/hr
Total capacity of dryer = 3*200 = 600bbl/hr
Here the incoming rate of berries in dryer is 1050bbls/hr
Utilization = demand rate/capacity rate = 1050/600 = 1.75 = 175%
Here we can see that the demand exceeds the capacity rate and hence there will be
inventory buildup at the rate of 450bbls/hr

Part 7: Seperator Units
There are 3 seperator units, each of capacity 400bbls/hr
Total capacity of the dry = 400*3 = 12200bbls/hr

Here the input is all the 450 bbl/hr cranberries from destoner and 600 bbls/hr cranberries
from dryer, enter the separator. Hence the demand rate = 1050bbls/hr

Utilization rate = demand rate/capacity rate = 1050/1200 = 0.87.5 = 87.5% = 88%
Question 2:
On a busy day, what is RP#1’s current maximum throughput rate?
There are two limitations for Plant 1. For wet cranberries, there are two bottle necks that are
generated. The first bottleneck is generated by limited dryer capacity which 600bbls/hr. The
bottleneck of the system is generated in the separators, which is 1200bbls/hr.
And with respect to the entire process, the maximum actual throughput rate that is achieved
in this process is (600+450) = 1050bbls/hr.



Question 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.

(Inventory buildup graph)

In the above graph, we observe that there is a build up of inventory for trucks for wet type
after 7.13 hours of the start of the operations. This can be concluded through the fact that it
takes approximately 7.13 hours, which means after 2pm (at 2:07pm), to exhaust a storage of
3200 that is getting filled at the rate of (1050-600=450) units per hour. The no. of trucks that
wait are (12-7.133= 4.89) * (450/75) = 29.34 = 30 approximately. Also, the total amount of
inventory that is accumulated within these trucks is 29.34*75 = 2200 bbls. Therefore it takes
approximately 30*75/600= 3.7 hours, which means (10:43 pm) for the waiting trucks to
finish and approximately (5400/600)= 9 hours (4am of the next day) for the piled-up stock
to process. Thus, there is a build up of 30 trucks in queue till the 12 hours which is 7pm. And
it takes an additional 3.7 hours for the queue of the trucks and 9 hours for the total inventory
(includes truck and bins) to finish.
For the dry type, there is no build up of inventory, as the demand rate is less than the capacity
rate, thereby making it a stable system.
TOTAL INVENTORY = 5400 bbls = (450*12) bbls = 2200 + 3200 bbls
Bin Inventory = 3200 bbls
Truck Inventory = 30 trucks holding approximately 2200 bbls.

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inventory buildup chart
Bins Trucks system