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$1,761,760/MBF and $2,171,207/MBF if they use vacuum drying technology with no air drying. A projection for a year was then done to determine the cost inventory savings for both companies. Plant C’s inventory cost projection for a year would obtain the following results: $7,166,250/MBF for conventional drying and $ 1,880,970/MBF for vacuum with no air drying. This means that Plant C could save $5,285,280/MBF per year. The inventory cost projection for a year for plant D was $8,514,870 for conventional drying and $2,001,249. According to the obtained values, Plant D can save $ 6, 513, 621 per year. The cost inventory savings that both companies have agrees with the feasibility analysis in chapter 5, in where the NPVs and IRR of vacuum with no air drying were higher than conventional drying, making this scenario more economically feasible. Table 39. Comparison between Conventional and Vacuum Drying Inventory Cost for Plant C and D for a period of 4 months Parameter Kiln equipment Inventory Cost Conventional $2,575,000 $2,388,750 Plant C Vacuum with air drying $3,333,850 - Vacuum with no air drying $6,659,700 $626,990 Conventional $2,225,000 $2,838,290 Plant D Vacuum with air drying $3,938,550 - Vacuum with no air drying $7,566,750 $657,083 The results agree with Apel et. al (2007), which established that reducing drying times will allow the industry to dry lumber in a faster way. The reduction in drying times will mean a reduction in cost performance, an increase in earnings, and a competitive advantage for the industry (Apel et. al2007). 7.5 SUMMARY The simulation models presented how vacuum drying can influence the throughput, WIP, and cycle time of one part of Plant C and D flooring production lines. Table 40 presents a summary of the obtained results for both case studies. WIP and cycle time from case A were respectively 48% and 87% less than conventional drying Plant C. WIP and cycle time from case B were 121PDF Image | Impact of Vacuum-Drying on Efficiency of Hardwood Products
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