National Cranberry
Cooperative
Operations Management-SCH-MGMT-670
Catna, Shanmuga
10/17/2014
Operations Management – SCH-MGMT-670
Introduction
This case analysis looks at the two primary problems at the receiving plant no.1 (RP 1) faced by National
Cranberry cooperative during the cranberry harvesting period, viz. 1) too much waiting period for trucks
before they unload berries at the RP1 and 2) too much overtime costs. There is also a secondary problem
regarding grading of process berries. Half of the berries graded as top quality are actually not top quality and
do not deserve extra premiums paid on the top quality berries.
Problems and Challenges faced by RP1
While there is a stable demand for the cranberries, the production for the cranberries is not stable.
The proportion of water harvested cranberries is increasing and likely to stabilize at around 70%.
The plant is incurring high overtime cost
Long waiting hours to unload the crop for growers/owners of the cooperative
Assumptions:
Dumping Capacity
# Kiwanee dumpers
5
Average time to dump
7.5 minutes (max:10, min:5)
Average weight of berries in truck
75 bbls
Total Dumping capacity
5 * 75 * 60 / 7.5 = 3000 bbls/hr
Holding Capacity
Total capacity of bins numbered 1-16
250*16 = 4000 bbls
Total capacity of bins numbered 17-24
250*8 = 2000 bbls
Total capacity of bins numbered 25,26,27
400 * 3 = 1200 bbls
Destoning Capacity
Total de-stoning capacity
4500 bbls / hr
Total bulk loading capacity
4 * 200 = 800 bbls / day
Bulk Truck loading capacity
# loaders of bulk trucks
2 @ a capacity of 1000 bbls/ hr per unit
Total bulk truck loading capacity
2000 bbls / day
