OPTIMIZING THE TRANSPORTATION-PROCESSING SYSTEM: THE CASE OF SHELL EGGS

In recent years the shell egg processing industry, like many other parts of the food manufacturing and processing sector, has seen a trend toward greater specialization and size of processing facilities. Increasingly the task of cleaning, grading and packaging eggs for sale to either retail or institutional customers has become a specialized marketing function. This has resulted in the growth of newer and larger specialized egg processing facilities which must compete with a substantial number of older and smaller processing facilities. Because of health concerns relating to cholesterol and the dearth of convenient new products, the industry also faces declining per capita consumption for eggs. These factors have lead to excess egg processing capacity. The presence of excess capacity decreases profits and increases the incentives for managers to use plant capacity more efficiently. Many plant managers have responded to these market challenges to their profit margins by focusing their attention exclusively on improving in-plant processing efficiencies. The research described in this paper shows that these managers might be better served by examining their entire transportation-processing system for greater economic efficiencies and profits.

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  • Accession Number: 00490020
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 31 1989 12:00AM