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Citrus Throughput Calculation for Revenue Maximization Planning

Understand revenue capability based on dwell time at citrus cold storage facilities to optimize throughput and revenue. Learn about handling rates, infrastructure requirements, and various racking system options.

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Citrus Throughput Calculation for Revenue Maximization Planning

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  1. Citrus Throughput Calculation Dwell ave. of 07 days = throughput per slot of 20.0 Dwell ave. of 08 days = throughput per slot of 17.5 Dwell ave. of 09 days = throughput per slot of 15.5 Dwell ave. of 10 days = throughput per slot of 14.0 Dwell ave. of 11 days = throughput per slot of 13.0 Dwell ave. of 12 days = throughput per slot of 12.0 Dwell ave. of 13 days = throughput per slot of 11.0 Dwell ave. of 14 days = throughput per slot of 10.0 Volume Throughput Based on Dwell • Citrus peak export production period in RSA weeks 20 – 39. • This equates to 140 throughput days. • Example: • Cold Store capacity of 5, 000 slots with ave. dwell of 7 days = 100, 000 p.p.a div. 20 weeks = 5,000 p.p.w = ave. 100% utilization. • Cold Store capacity of 5, 000 slots with ave. dwell of 10 days = 70,000 p.p.a div. 20 weeks = 3,500 p.p.w = ave. 70% utilization. • Cold Store capacity of 5,000 slots with ave. dwell of 14 days = 50,000 p.p.a div. 20 weeks = 2,500 p.p.w = ave. 50% utilization.

  2. Citrus Throughput Calculation Using an average handling rate of R165.00 per pallet (incl 7 days storage) Ave. 7 day dwell = 100% utilization = R165.00 x 100,000 plts = R16.5m 100% of revenue capability Ave. 10 day dwell = 70% utilization = R165.00 x 70,000 plts = R11.5m 70% of revenue capability Ave. 14 day dwell = 50% utilization = R165.00 x 50,000 plts = R8.25m 50% of revenue capability Average Revenue Loss Based on Dwell • Conclusion: • Revenue capability is directly associated with ave. dwell time of pallets. • Revenue maximization occurs below 7 day dwell. • Citrus industry ave. dwell time is 10 days, therefore revenue maximization on handling is at 70% • Fixed racking systems operate at 85% of capacity, therefore fixed racking facilities operate at 85% of the industry ave. of 70% revenue maximization per slot. • Citrus dwell time must be reduced to maximize revenue capability per slot

  3. Citrus Throughput Calculation Using an average handling rate of R165.00 per pallet (incl 7 days storage) Cold store capacity of 5,000 pallets handles 60,000 pallets between weeks 20 – 39. At 7 days dwell revenue capability = R16,5m 60,000 plts x R165.00 = R9.9m Therefore achieved 60% of revenue capability Example of Revenue Loss

  4. Citrus Cold Store Infrastructure Requirement The citrus industry cold store handling rate is generally set with a 7 day free period Therefore cold storage principles should be measured at 7 days Thereafter general storage rates apply after the 7 day period has expired The measurement of cold store infrastructure can then be based on throughput of 7 days Principle • Calculation per 1,000 Pallets Capacity • 1,000 pallets per week = 150 pallets per day in and out • This implies that per 1,000 pallets capacity • 5 Trucks per day should be offloaded • 5 Trucks per day should be dispatched • 8 Containers should be packed per day • Container Bay Calculation • With a 16 hour shift system and productivity of 1 container loaded every 2 hours • 1 Container bay per 1,000 pallets capacity (8 containers x 2 hrs per container = 16 hours) • With a 24 hour shift system and productivity of 1 container loaded every 2 hours • 1 Container bay per 1,500 pallets capacity (12 containers x 2hrs per container = 24 hours)

  5. Citrus Cold Store Infrastructure Requirement Intake: 25 trucks per day should be offloaded 16 hour shift system = 3 trucks every 2 hours (1.5 trucks per hour) 24 hour shift system = 1 truck per hour Dispatch: 25 trucks per day should be offloaded 16 hour shift system = 3 trucks every 2 hours (1.5 trucks per hour) 24 hour shift system = 1 truck per hour Containers: 40 containers should be packed per day 16 hour shift system will require 5 functional container bays = 8 containers per bay per day @ 1 container every 2 hours 24 hour shift system will require 3 functional container bays = 12 containers per bay per day @ 1 container every 2 hours Example: Cold Store with Capacity of 5,000 Pallets

  6. Citrus Cold Store Infrastructure Requirement Fixed racking systems Fruit fixed racking systems are typically Drive-In type systems Slot utilization estimated ~ 70% Warehouse space utilization ~ 60% Conducive for conventional type shipping – bulk order picking for reefer ships Containerization focused exports are based on consignment type orders Fixed racking systems require advanced order picking ahead of time Requires large accumulation and pre-staging areas This type of system hinders productivity where high volumes of containers are packed Adds multiple handling of pallets Mobile racking systems Conducive for fruit industry Slot utilization estimated ~ 90% Warehouse space utilization ~ 80% High degree of efficiency achieved Stowage and retrieval of pallets done simultaneously Minimal handling of pallets Minimal floor space required Racking Systems and Cold Store Layout

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