SK Food Enterprises Ltd. is a company specializing in vegetable growing and distribution. Its most important customer group is the major UK supermarkets which require fresh produce to be delivered to them 364 days a year. The company has all the staff, expertise and specialized facilities needed to supply these supermarkets throughout the year. One of the most important vegetable products of this company is radicchio (a leaf chicory also known as Italian chicory), which is grown in England during the summer and on the European continent in the remainder of the year. Radicchio are dense and round, but are easily bruised so have to be harvested with great care, after which they are stored and transported in chilled conditions to avoid deterioration.

From the time of cutting, they must be packed quickly to minimize water loss and taken rapidly to a cool store. Market demand varies greatly, dependent on the season and on weather conditions, with demand rising rapidly in periods of hot, dry weather and in the preceding day. Supermarkets rely on weather forecasts to predict demand for salads and fresh sandwiches.

During a busy period of sustained good weather in August, the average daily (eight hours) output from each rig was as follows:

Supermarket…………………1800 trays

Wholesale…………………….230 trays

Process………………………..200 trays

Describe the inputs and outputs of the transformation process outlined in this case, supported by an appropriate diagram.

Describe the five operations performance objectives for the macro-operation (Quality, speed, dependability etc.)

Calculate and discuss the capacities for each micro-operation of the radicchio rig, and from this estimate the total capacity. Discuss to what extent the overall capacity depends on the product mix. Discuss what problems are encountered when attempting these capacity calculations.

Your calculations should be completed in a spreadsheet and screenshots included in the main body of your report; additionally, your appendices should include screenshots of the formula view of the spreadsheet.

How well balanced are the capacities, and what could adversely affect this balance? (Present further calculations to support a scenario).

Using your data to compare actual output to the capacity, what does this suggest about the operations management tasks involved in running all six rigs?

In a typical British summer, the weather can cycle frequently between cool, dull periods with spells of heavy rainfall, and periods of hot, dry and sunny weather.

What capacity management problems could arise during such variations in the weather, and how can management best respond to such fluctuations?