scheduled over five days a week, but occurs according to the hatchery's 

 setting and hatching schedule. Eggs are set and chicks removed 21 days 

 later at a frequency of two, four, or six times a week. Generally, the 

 number of days of hatch removal per week increases with hatchery size 

 and output in order to even out the workload and improve the efficiency 

 of operations. 



For this analysis, firm A removes hatches and distributes chicks 

 twice a week; firm B, four times a week; and firms C, D, E and F, six 

 times a week. The number of chicks distributed per week ranges from 

 25.000 for firm A to 417,500 for firm F. Included in this number of 

 chicks is an allowance for expected mortality during the growing-out 

 period. It is assumed that 4.2 percent of the chicks distributed do not 

 reach market age. 



Examination of the truck requirements for hatcheries and truck 

 sizes available for distributing chicks revealed that no one or two sizes 

 would be satisfactory for the six firms. Consequently, truck sizes are 

 matched with the size of the regularly scheduled capacity shipments 

 of the six hatcheries. This resulted in the selection of five truck sizes 

 ranging in load capacity from 14,000 to 34,800 chicks. 



Crew size on each truck is limited to a maximum of two men, a 

 driver and a helper. The crew performs all the unloading and chick 

 placing functions at the farm. The grower performs the house prepara- 

 tion and has the house ready when the chicks arrive. 



Table 4 presents the per unit cost of chick distribution for the six 

 firm sizes with density at three production levels. Costs are expressed 



Table 4. Chick Distribution Costs in Cents per Pound of Live Broiler 

 for Six Firms at Three Density Levels. 



Firm 



Truck 



Labor 



Mgt. 



Total 



A 

 B 



C 

 D 



A 



B 

 C 

 D 

 E 

 F 



A 

 B 

 C 

 D 

 E 

 F 



(cents per pound) 

 1,000 Pound Density Level 



.069 

 .052 

 .059 

 .070 



.058 

 .036 

 .033 

 .035 

 .039 

 .038 



.054 

 .029 

 .024 

 .023 

 .026 

 .026 



13 



