Analysis of Production and Shipping Control ‘The Cucaracha Coffee Company is a large producer of coffee for the retail market. Each day, 300,000 pounds of green coffee are roasted; this results in finished-goods production of somewhat more than 250,000 pounds, as there is a loss in roasting of from 14 to 15 percent of the original weight of the green coffee. This loss is known as “shrinkage.” About one-half the production is in the most expensive coffee, Cuca Special, which is packed in vacuum cans. The remainder is in a cheaper blend that is packed in paper bags.

From the roasting plant, shipment is made by truck to fifty distributing branches, from which sale and delivery are made to 100,000 retail grocery stores. lo1