Natural Blends Inc. Case Analysis

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Part A
Assume that the production system was running only one size of oranges. Consider just
steps two through four: extraction, filtration, and concentration.
1a) How much orange juice concentrate can be processed in one 8-hour workday?
The system production rate should be the lowest production rate among three steps, which
would be the concentration step (18000 pounds/hour). Moreover, the filtration step
requires 30 minutes to restart the machine after running 90 minutes (2 hours), so as the
result, we have 8 hours / 2 hours = 4 times/workday that the whole system will stop.
Thus, in one 8-hour workday there will be 18000 * 1.5 * 4 = 108000 pounds of juice
concentrate that can be processed.
1b) Assume extraction had previously been setup for the size oranges being processed.
How much idle time will there be in the extraction operation during one 8-hour workday?
Idle time in extraction operation = Idle time for filtration + Idle time of unused capacity.
Idle time for filtration = 4 times * 0.5 hour = 2 hours.
Idle time of unused capacity = Total time * (Maximum Extraction Capacity *€“ Actual
Capacity) / Maximum Extraction Capacity = 6 hours * (6 * 20000 - 108000) / (6 * 20000)
= 6 * 0.1 = 0.6 hour
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Idle time in extraction operation = 2 hours + 0.6 hour = 2.6 hours
2) If you could add storage capacity somewhere between steps two and four in this
production line in order to increase daily output, where would you place it? How much
storage would you add?
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