Reference no: EM131551867
Assignment: BLUEBERRY FARM COMPARISON
Assume you own a five-acre blueberry farm. Blueberries ripen over a period of weeks and must be picked as they reach the proper blue color. Traditionally, blueberries have been picked by hand, usually with migrant labor. Laborers are currently paid $0.10 a pint. In a typical year it is necessary to pick the same bush four or five times to get 90 percent of the crop. Each time the field is picked it takes approximately three twelve-hour days. An acre of blueberries will typically yield between 10 and 15 thousand pints if 90 percent of the crop is picked.
Three supervisors must be available throughout each day of picking to log in picked berries, help with basic sorting, and keep track of equipment. Each of these individuals receives $8 an hour.
More recently, a blueberry patch owner has had the option of having the field machine picked. This process will typically allow the owner to harvest 60 percent of the crop if the mechanical picker is used twice. A third pass will raise the yield to 75%. Rental on the picking machine is $2,400 for each use. One supervisor at $8 an hour is needed for the eight hours it takes to pick the berries mechanically.
Required:
Discuss the quantitative and qualitative considerations necessary when making the decision to handpick or automate. Frame your answer using the strategic triangle. Make a recommendation and justify your answer. Be very clear about your assumptions.
Attachment:- Strategy-and-ma.pdf