The inputs for the alternative are ealciilated and transformed into 

 costs. On an annual basis, the type Q vehicle is operated 33,977 miles at 

 a cost of $4,990. The labor input is 2,238.7 man-hours of driver time and 

 2,231.0 man-hours of helper time (the helper is not required on one trip 

 for a partial load). At $1.70 per hour, the wages for the driver amount 

 to $3,806, and at $1.35 per hour, the wages for the helper total $3,013. 

 The annual cost for distribution, including $400 for management, is 

 $11,929.00 or 0.116 cents per chick. 



Distribution Resources 



Table 20 summarizes the number and types of vehicles and labor 

 used by the six distribution models at each of the three density levels. 

 As the volume increases, a larger load capacity vehicle is substituted 

 until this factor is exploited or the restrictions force the use of several 

 small capacity vehicles. Hatchery F at the two higher density levels uses 

 the maximum capacity vehicle, but has to use two smaller capacity vehi- 

 cles at the low density level. For hatcheries G and H, vehicle numbers 

 increase. Hatchery G which distributes a volume of chicks one and a half 

 times that of F uses two type P vehicles, and H uses two type Q vehicles. 



The size of the labor force increases with increasing volume at each 

 density level. At the low density level, helpers assist drivers of hatch- 

 eries E and F. At the 1,491 chick density level, helpers are used by hatch- 

 eries F through H, and no helpers are required for chick distribution 

 at the highest density level. The number of drivers is equivalent to the 

 number of vehicles. 



When density increases for a given volume, vehicle numbers and 

 size do not change except for hatchery F. Hatcheries E through H 

 eliminate the requirement for helpers and F eliminates one driver. 



The sokitions for distribution by hatcheries G and H at the low 

 density levels are not presented. The required travel time is approaching 

 the 10 hour work day restriction and leaves very little time to place the 

 chicks at the broiler producing facilities. To accomplish the placement 

 within the imposed restrictions would require the addition of many ve- 

 hicles and men and result in a very high cost. Firms distributing chicks 

 beyond a radius of 150 miles would probably use some other alternative 

 such as using sleeper-cab vehicles and two days to complete a trip. If 

 broiler production facilities are spread over a very large area, the firm 

 could operate two hatcheries, each servicing a section of the full area. 

 However, it is not the intent of this study to examine the alternatives 

 available to hatcheries for servicing such distant areas. 



Chick Distribution Costs 



Table 21 is a summary of costs for chick distribution by the six 

 hatcheries. As volume increases at each density level, the distribution 

 cost per chick initially decreases but at a decreasing rate. Eventually, 

 the cost commences to increase but at a different volume for each den- 

 sity level. 



At the low density level, the cost per chick decreases from 0,231 

 cents for hatchery A distributing 12,500 chicks a day, two days a week 

 and 1.24 million chicks annually to 0.176 cents for hatchery C distribut- 



38 



