The cost budgets for the several sizes of model firms are based in 

 part on the following assumptions and conditions: 



(1) Only the effects on costs of changes in firm size and produc- 

 tion density are studied, so other variables such as type of poultry house, 

 factor productivities in broiler production, and type of bird are kept 

 constant. 



(2) The basic technical coefficients needed to determine the cost 

 of assembly are: 



(a) Effect of crew size on pickup rate, 



(b I Effect of distance on travel time, and 



( c ) Effect of time in crates on live bird shrinkage. 



(3) Hauling volume of model assembly firms is defined by the size 

 of processing plants established in a proceeding report in this series.'^ 



(4) The work day of truck drivers, pick up labor, and crew fore- 

 men, including productive time, off time, and travel time, cannot exceed 

 10 continuous clock hours. This is the typical maximum work day in the 

 industry according to the survey of firms. 



(5) Density is considered to be the quantity of 3.5 pound live 

 weight broilers produced in some two dimensional portion of the supply 

 area (square mile) over some specified period of time (year). Three 

 levels of density are studied: 1,000, 5,000, and 25,000 pounds of live 

 weight broilers produced per square mile per year. These include the 

 range of density levels existing in New England. 



(61 The assembly function is geared to the processing function so 

 that no Ijirds arrive at the processing plant prior to its opening, and the 

 last load arrives at the plant in sufficient time so that it can be unloaded 

 and processed before the plant closes. Processing plants generally operate 

 for one shift per day covering nine clock hours. This relationship of the 

 assembly and processing functions makes a second shift for assembly 

 unnecessary. 



(7) Poultry is located uniformly over the supply area, in predeter- 

 mined flock sizes. Each flock has one age class, and each farm produces 

 five flocks a year. A flock will be picked up within two consecutive work 

 days. 



(8) The work year of the firms is 247 days. This is made up of 

 52 five day weeks minus 13 paid holiday and vacation days. This corres- 

 ponds exactly to the work year specified for the processing plants in a 

 previous study in this series, ** 



(9) All poultry is picked up at the farms by crews of men that 

 travel to the farms and back in cars. No pickup labor or foremen travel 

 in the trucks. 



( 10 1 An exclusive supply area is assumed for each model firm. 

 However, whether competition exists within an area makes little differ- 

 ence. Here, as in actual competitive situations, it is the production den- 



^ ibid. 



6 Ibid., p. 8 



