in crew sizes, labor input-output relationships in handling poultry at 

 the farm, flock size, and the proportion of broilers and fowl handled. 



Some of the principal assumptions and techniques on which this an- 

 alysis is based are: 



(1) Ten sizes of assembly firms were selected. These were capable 

 of handling the poultry requii'cd by processing plants with capacities 

 of 150; 300; 600; 1,200; 1,800; 2,400; 3,600; 5,000; 7,500; and 10,000 

 broilers per hour, as established in a previous study. ^ 



(2) Initial cost budgets were prepared for 12 selected truck sizes 

 found in use by New England poultry assemblers. These were capable 

 of carrying 2, 5, 10, 20, 30, 60, 100, 130, 160, 190, 220, and 320 crates each. 

 This selection served to establish the nature and extent of cost relation- 

 ships without considering an almost unlimited number of truck com- 

 binations. 



(3) Firm capacity was increased by adding additional trucks of the 

 same size as in the initial budget. Costs at 100 percent of capacity were 

 determined with annual mileage traveled per truck at 2,500; 5,000; 

 6,250; 10,000; 12,500; 25,000; and 50,000. For each firm capacity and 

 mileage level, costs were then determined at 10, 40, 70, and 130 percent 

 of capacity. The mileage levels used were equivalent to two trips per 

 day (for 247 operating days) of the following average round-trip lengths 

 in miles: 5, 10, 12.5, 20, 25, 50, and 100. 



(4) Truck travel time was basically determined by using average 

 rates of speed which increased with distance (see Appendix Figure I).^ 

 Where passenger vehicles were required to transport pickup crews be- 

 tween farms, additions to travel time were made at a rate which de- 

 creased per man added to the crew. 



(5) Statistically-computed curves were used to establish labor input- 

 output relationships for work performed at the farms. Output per man- 

 hour was determined by removing travel time from the data used for 

 Figure 2 (see Appendix Figure II). Crew size was determined from 

 Appendix Figure III. 



(6) Flock size was progressively increased with annual volume 

 hauled as indicated in the survey. Appendix Table VII shows the in- 

 crease from an average of 3,000 pounds per lot per farm at one million 

 pounds annually to an average of 30,000 pounds per lot per farm at 

 40 million pounds and above annually. 



(7) The percentage of broilers was progressively increased with 

 annual volume hauled. The proportions of broilers ranged from 50 

 percent for small a!=sembly firms to 98 percent at 70 million pounds 

 annually. Appendix Table VII shows the proportions used at selected 

 volume levels. 



(8) Since the cost projections resulting from the preceding assump- 

 tions were made with mileage per truck held constant, volume per mile 

 of truck travel varied. This occurred because of the increase in the 



S Rogers, G. B. and E. T. Bardwell, Marketing New England Poultry. 2. Economies 

 of Scale in Chicken Processing. N. Hamp. Agr. Expt. Sta. Bui. No. 459. April 1959. 



9 Based on truck mileage and time relationships in: Rogers, G. B. and H. C. 

 Woodworth. Distributing and Handling Grain-Feeds in New Hampshire. II. Problems 

 in Retail Distribution. N. Hamp. Agr. Expt. Sta. Bui. 427, July 1956. Fig. 9, p. 37. 



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