National Cranberry Cooperative Case
20090562
Political Science
Junki Hong
To begin with, this assignment is done with Kim Seo Yeon (20100472, Sociology). National Cranberry Cooperative Case is the study done by the Harvard Business School about a process of warehousing from the delivery and arriving of cranberry to a manufacturing in the warehouse. National Cranberry Cooperative was an organization formed and owned by growers of cranberries to process and markets their berries. The handling of process fruit RP1 was highly mechanized. The process could be classified into several operations; receiving and testing, dumping, temporary holding, destroying, dechaffing, drying separation and bulking and bagging. The objective of the total …show more content…

In seasonal labor part, we can calculate (22.2 - 16.6) x 26 x (2.25 x 1.5) x 20 = $ 9775.35. In sum, total over time saved cost is $26,694.23. When we set 1 dryer and 6 bins, it brings about additional cost $55,000 (6bins x $5,000 adds to a dryer $25,000). Total additional cost is $55,000 - $26,694.23 = $28,305.77. In this case, hourly inventory increasing rate is the 410 barrels (1,200 barrels – 800barrels) and in 11-hour shift, there will be 4,510 barrels of berries in sum, however we can handle them because of the wet bin storage increased to 4,700. ( 6bins x 250 + 3200 barrels) Therefore trucks don’t need to wait to unload berries. In the third option, we add 2 dryers, so we can handle 1,000 barrels per hour in drying process and we can reduce the overworking time from 22.2 hour to 13.3 hour. (13,300 barrel / 1,000 barrel is equals to 13.3 hours per a day). In non-seasonal labor part, we can calculate (22.2 - 13.3) x 27 x (3.75 x 1.5) x 20 = $27,033.75 which is equals to Over time x Employee Number x Over time rate x Day. In Seasonal labor part, we can calculate (22.2 - 13.3) x 26 x (2.25 x 1.5) x 20 = $15619.5. In sum, total over time saved cost is $42,653.25. When we set 2 dryers, it brings about additional cost $50,000. Total additional cost is $50,000 - $42,653.25 = $7,346.75. In this case, hourly inventory increasing rate is the 210 barrels (1,200 barrels –