A Cost Analysis of Fertilizer Bulk Blending Plants in Illinois
A Cost Analysis of Fertilizer Bulk Blending Plants in Illinois
B J Billy Joe Bond
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4 C. . . 5 D. l c l c 4 1 to 6. 6 1 to 14. 9 1 to 12. 5 1 to 4. 8 E. . . 8 F 6 G 5 H 6 1 to 14. 9 a The ratio between daily potential output (two men) and storage capacity is computed by multiplying 1. 161 by the total storage capacity and dividing the product by the daily potential output. b Ton here refers to a short ton (2, 000 pounds). Since an equivalent ton of 10-10-10 weighs 1, 722 pounds, 1 short ton = 1. 161 equivalent tons of 10-10-10. c These bins were used primarily for rock phospha...te storage. 7958J FERTILIZER BULK-BLENDING PLANTS 33 Other plant managers used a different method of scheduling. They ordinarily began the season with full bins but tried to maintain a level of 50 to 60 percent of capacity in the bins for the remainder of the season, thereby reducing losses from price changes but increasing the possibility of losing revenues because of inadequate supplies. This type of inventory control requires much more accurate scheduling. Some managers kept records of the daily volume of materials blended in past seasons, and based the future seasons' scheduling on the past distribu- tion of sales.
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