Case Report: National Cranberry

Instructions:

• Rename the file with group number and with responsible name: e.g. NC_Group1_JohnDoe

• One file should be transmitted by group. The grade will be the same for all members.

• If you need to make assumptions to answer a question, clearly state them, logically defend them,

and then proceed to answer the question accordingly.

• Please limit your answers to 4 pages excluding any attachment. Use 11 pt font or larger. Double

spacing is preferred, 1.5 line spacing is the minimum (consider the reader’s eye strain). The idea

is to answer the questions concisely.

• Comment your charts and/or diagrams.

• Describe clearly the OM concepts you are using to answer questions.

• Grades will be awarded for the structure, clearness and accuracy of the reasoning. Numbers

without explanation should not be provided.

• Tackle the next questions and submit your work by Wednesday 02 November 8.30am.

Supporting Analysis

Your analysis should address the issues below.

(Note: You may make use of the following information and assumptions about National
Cranberry:
• On an average “busy” day there are 18,000 bbl arrive over the 12-hr period (7 am to 7
pm). This is based on a “typical” busy day in September.
• All operations at RP#1 start at 7am.
• Wet berries are 80% of all berries.
• Holding bins 17-24 are dedicated to wet berries.
• Capacity of the dumpers is 3,000 bbl / hr (it takes on average 7.5 minutes to dump a
truck, a truck holds on average 75 bbl so, each of the five dumpers will take 600 bbl/hr).
• Leasing a truck and driver costs $15/hr. Rates for RP#1 employees are given in the case.)

Causes of Delay

Present a process flow diagram for for RP#1, labeled with relevant capacities and utilizations on
a busy day in September 1981. Indicate different processing flows for wet and dry berries.
Clearly identify the bottleneck. (4 points)

Describe the situation during a typical busy day by constructing an inventory build-up diagram
for bins and trucks. Your diagram should include build-up and draw-down rates, inventory
levels, and times. Make a cost analysis: what is the truck waiting cost and the overtime cost. (4
points)

How would the cost analysis evolve if we received 10% more berries per day? (4 points)

Analysis of Investments (6 points)

Provide an economic analysis of the following candidate investments:

• 1 or 2 new dryers
• bin conversions

Do these affect the inventory buildup diagram and the truck waiting cost?