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PLANNING
A WHOLESALE FROZEN FOOD
DISTRIBUTION PLANT
V' Lit
Washington, D.C.
June 1952
The study was part of a larger research project,, covering the development
of principles for improved layout, design, and location of farm and food product
marketing facilities, under the general supervision of William H. Elliott, staff
assistant for marketing facility and materials-handling research, Marketing and
Facilities Research Branch.
- i -
CONTENTS
'age
Summary iii
Introduction I
The components of a wholesale frozen food distribution plant ... 3
Storage space 3
Order -assembly room 3
Order -holding space 3
Receiving and shipping platforms 3
Office space k
Other plant components k
Planning for storage 5
Storing in public warehouses 5
Private storage facilities 9
Order -assembly methods and facilities 16
Planning in-plant order -assembly operations 18
Work elements involved in filling individual orders and
moving orders to holding room 23
Methods and facilities for assembling about 2^0 frozen food
orders, totaling 1,000 cases, daily 26
Methods and facilities for handling daily volume of 2,000 cases . 3°*
- ii
SUMMARY
- iii -
In several cities specially designed warehouses have been
constructed to provide complete storage and distribution facilities
for most of the wholesalers handling frozen foods in those locali-
ties. In addition to creating a frozen food "market," facilities
of this type reduce the capital investment required for individual
wholesaler plants, make possible a joint and more complete utiliza-
tion of storage space, enable wholesalers to make common use of
materials-handling equipment, and provide some of the advantages of
operating in public warehouses.
- IV -
PLANNING A WHOLESALE FROZEN FOOD DISTRIBUTION PLANT
INTRODUCTION
Storage Space
Order-Holding Space
Office Space
- 6 -
Founds Dollars
The ciiarges for a storage month begin on the day the products are
received at the warehouse. A fraction of a storage month counts as a
whole month. It is important, tnerefore, that wholesalers who use public
warehouses for long-term storage have adequate plant facilities so that
merchandise may be withdrawn at or near the end of a storage month. Table 1
illustrates how a "loose" withdrawal schedule may result in the payment by
wholesalers for considerably more storage time than is used.
- 7 -
1. . . . May 11 May 26 : 16 31 15
2. . . . March 30 May 11 ! 43 61 18
3- • . April 6 June 1 : 57 61 4
4. . . . May 23 May 26 : 4 31 27
5. • • . March 31 May 1 32 32
6. . . . April 22 May 18 :: 27 30 3
7. . . . March 21 May 1 42 61 19
8. ; , . May 8 May 31 '
24 31 7
9. . , . February 23 May 22 : 89 89
10. . , . February 23 March 22 28 28
11. . . . January 10 February 21 . 43 59 16
12. . , . February 13 March 20 36 59 23
13. . . . January 18 March 14 : 56 59 3
14 . • . . January 5 March 17 : 72 90 18
15. . . . February 1 March 9 : 36 59 23
16. . . . January 6 March 20 : 74 90 16
The elements of cartage costs are: Travel cost to and from the
wholesale plant; waiting at the warehouse for products to be delivered
to the platform; loading at the warehouse; and unloading at the plant.
Tables 3 and 4 show two examples of warehouse-to-plant cartage costs.
Costs ranged from 1.4 cents per case for a wholesaler located only a few
blocks from the warehouses to 4.7 cents per case for the wholesaler whose
plant was 41 to 45 miles from the warehouses used.
- 10
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- 12 -
storage because they prefer not to invest capital for building their own
facilities. A wholesaler attempting to build up his business in a new
territory takes less risk by using public warehouse facilities than by
constructing his own facilities. In some areas, however, adequate public
warehouse space is not available and the wholesaler has no alternative
except that of constructing his plant with adequate storage space.
Figure 4. --Where several rows of a single item are stacked together, merchandise
should be removed from only one stack at a time in order to maximize the amount
of usable storage space.
7/ith the first type of operation, which is the type mo3t widely
used by wholesalers, special plant facilities are required for assem-
bling and holding individual orders, and it is with this type of
operation that the following discussion is concerned.
When individual orders are assembled in the plant for loading onto
delivery trucks, "order assembly" covers the cycle of operations per-
formed in: (1) Removing full cases or cartons of frozen foods from
stacks in the storage area; (2) transporting the cases from the storage
point to the order assembly room; (3) stocking chutes, bins, racks, or
other facilities in the order-assembly room used for temporarily holding
supplies; (u) assembling items for filling, marking, and checking indi-
vidual orders; (5) transporting assembled orders from the order-assembly
room to the order-holding room; and (6) stacking the assembled orders in
- 17 -
reduce the costs of frozen foods, this assumption has not been
substantiated. The 12-package cartons are more costly in certain res-
—
pects than are the larger sizes principally in the cost of the cartons
themselves for incasing equal amounts of products. Moreover, an in-
creased amount of labor is required for stitching, stenciling, casing,
sealing, loading on handling equipment, moving into and stacking in
storage rooms, moving out of storage, and loading into carriers the
12-package case in comparison with that required for a given volume in
larger-sized cases. Observations at several packing plants indicated
that the additional cost to the packer for using 12-package cartons
instead of the 36-package ones ranged from 2 to U cents per dozen
consumer packages. In addition, increases in transportation and ware-
housing costs must be considered. However, wholesalers who sell large
amounts of frozen foods in units of 12 may find that the use of the
dozen-package carton will save enough in plant handling costs to more
than offset the additional cost of packages packed in this size carton.
Since a large percentage of frozen food items are still being sold in
units of a half dozen, it is more efficient to split large cartons
than to split the smaller ones.
The methods and equipment to be used and the facilities that will
be needed for performing the entire cycle of order-assembly operations
in the plant should be determined by the individual wholesaler after
consideration has been given to the follovjirig factors: (l) Total vol-
ume of business; (2) number of frozen food items stocked; (3) volume
sold in less-than-case lots; (U) services offered to customers; (5) tem-
perature of order-assembly room; (6) use of insulated containers;
and (7) limitations imposed in remodeling an existing facility. An
interrelationship exists between a number of these factors. As an
example, if a daily delivery service is offered to customers, more
equipment and facilities may be required to handle a given volume of
business than would be required to make deliveries on alternating days.
- 19 -
fork-lift trucks and pallets, are relatively low, the fixed costs per hour
vill he relatively high and these costs may offset possible efficiencies
when compared with equipment requiring a smaller investment. All materials -
Although some wholesalers sell only J,0 to k-0 fast -moving frozen food
items, a relatively large number of wholesalers sell over 100 items, and a
few sell as many as 300 items. Working space along the assembly line, where
cases are split as needed and items for individual orders are brought
together, must be provided for all items stocked. Even though working space
for the various items may be provided in roughly the proportion that each
item has to the total volume sold, a considerably longer assembly line will
be needed where a large number of items are stocked than that required for
a relatively small number of items, to assemble the same volume of frozen
foods. Although full cases of two or three slow-moving items may be stocked
in the same bin, chute, or rack, depending on the method used, exact pro-
portions between volumes of the slower moving items and space cannot be
achieved.
Where packages are sold in less -than- case lots, cartons must be opened,
the required number of packages removed, and these packages placed either
in an empty carton or in a carton with other items. To simplify order-
filling operations and minimize errors, full cases required in filling
individual orders are usually moved over the order -assembly line with the
less-than-case quantities.
Wholesalers who require 2k hours between the time orders are received
and deliveries are made can usually plan a more systematic and efficient
order -assembly operation than can wholesalers who give quicker delivery
service. Moreover, the costs of loading out delivery trucks and delivering
the merchandise are likely to be much less where one delivery per day ser-
vice is given. However, in a typical operation where two order fillers
report for work at 7 a.m., and another crew of the same size reports at
k p.m., in order to provide quick service, a smaller amount of space in
special facilities may be required, particularly for holding orders, than
would be required if the wholesaler operated on a one delivery per day
basis and had a four-man crew report for work at k p.m.
When relatively quick delivery service is given, the methods and types
of equipment used for performing order-assembly operations should take into
account the smaller crew size usually employed at one time and the conse-
quent less possibility for specialization of labor. If a two -man crew is
used, each worker must, of course, perform a much larger range of duties
than would be required with a four-man crew.
- 21 -
_- —
—— '
s / ^*m "
.
- 22 -
about 10 minutes out of each working hour to warm up. During an 8-hour
operation warm-up time amounts to about 60 minutes of unproductive time
since warm-up time at lunch hour and at the end of the working day is
usually taken on the employee's time. Moreover, since order fillers
working in zero rooms have to wear heavy clothes which hamper their
efforts, they are somewhat less productive than order fillers working in
a warm room and wearing lighter clothing.
Since zero order -assembly rooms also can be used for storing reserve
merchandise, a more flexible schedule which permits better utilization of
labor can be used for stocking the order -assembly line than is possible
with warm-room operations. However, since order fillers must remove
individual cases from stacks in assembling items for individual orders,
stacking more than one pallet load high is not desirable. Because cases
of frozen foods can be stacked en masse along the order -assembly line in
zero rooms, the line can be somewhat shorter than that in warm-room
operations --a feature which is conducive to greater productivity on the
part of order fillers
be held in zero order -assembly rooms, less separate storage space will be
needed than for warm-room operations. Where public refrigerated warehouses
are used, items can be withdrawn from storage in relatively large quanti-
ties. Less aisle space is required in zero rooms than that for warm-room
chute or warm-room palletized operations.
23 -
of assembly-line order-filling
operations of the type shown in
figure 7 indicate that individ-
ual orders can be filled, moved
to the order -holding room, and
stacked at a rate of about
7 man -minutes per order. The
number of workers required on
the line and the labor require-
ments per order are dependent
on the volume moved over the
line during a given period and
the number of items stocked.
Other factors that affect the
size of crew required are:
(1) Volume sold in less -than
case lots; (2) temperature of
order-assembly room; (3) skill
and effort of workers; and
(h) use of insulated shipping
containers
provisions for packing them during the example of the path followed by
order-assembly process. one worker in filling an order.
. . )
- 2k -
STATION NO. 1
STATION NO. 3
25. Marks full case with order and route numbers and closes flaps.
ORDER-CHECKING STATION
fq
35. Spot checks it ems in orders, loads cases on 4-wheel hand truck,
pushes loaded hand truck into order- ho lding room, picks up
empty truck, recaps driver route sheet, and exercises some
supervision over operation.
Figure 7. --Work elements and the sequence in which they are usually performed in
filling an order consisting of 5 items of one-half dozen packages each, 4 items
of 1 dozen packages each, and 2 items each for a full case. A warm-room chute
operation is used for illustrative purposes but the elements of the operations
performed would be basically the same for other types of operations.
-
25
Figure 8---A diagram showing the extent to which an order clerk walked in completely
filling one order consisting of 5 items of one-half dozen packages each and 5 items of
one dozen packages each. The lines represent the path followed by the worker.
The time might be reduced by arranging the order-assembly set-up, allowing more
space for the systematic arrangement of working stock.
-26 -
are loaded directly onto refrigerated delivery trucks as the orders are
assembled, an additional worker is required to stow the merchandise
properly in each truck and replace filled trucks with empty ones
Dual order -assembly line --In zero-room operations, dual assembly lines,
.
each 60 feet long, are suggested for wholesalers who stock about 100 frozen
food items and whose peak daily volumes of sales approximate 2*4-0 orders
totaling roughly 1,000 cases of frozen foods.
- 27
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Identical stocking arrangements are used for each assembly line, and
each line operates independently of the other.
The night crew consists of 5 workers -~h order fillers, and 1 checker.
Two order fillers are assigned to each line, and each order filler is
usually assigned responsibility for the items along roughly 30 feet or
one-half the line. The order checker is stationed at the end or the con-
vergence of the two lines to spot check assembled orders, remove them from
the line, and place them in the order-holding area.
Invoices are grouped by truck routes, and all invoices for the same
route are assigned to one of the two lines Order filling begins at the
.
first station in each line. (See fig. 9-) The order filler in station 1
examines the invoice, determines the items and amounts of each required
from his station, and starts removing these items from storage positions.
Full cases are placed on the conveyor and marked with the order and route
numbers. In assembling items in less -than-case quantities, a full carton
is removed from its storage position, placed on the conveyor, opened, and
the required number of packages are either removed and placed in an empty
container or in a previously opened but partly filled case. Opened cases
from which packages are only partly removed are placed on the work table
for later use. Containers containing less-than-case quantities are also
marked with the order and route numbers. This cycle is repeated until all
items stocked in station 1 have been assembled. The invoice is then placed
on the first or leading case, all cases are pushed into the second station,
209196 0—52 5
. . .
- 30 -
and the order filler in station 1 begins the assembly of another order.
In station 2 the operation is continued as in station 1 until the order
has been completely filled and all cases are pushed to the checker at
the end of the line
The checker spot checks the orders, removes them from the conveyor,
and places them in the space reserved for holding orders. If skids or
pallets are used, unit loads are built as the packages are removed from the
conveyors and these loads are moved to and positioned in the storage area
by use of skid jacks or other appropriate equipment. Four- or six-wheel
hand platform trucks may also be used in holding orders in unit loads
Single order -assembly line --Wholesalers who stock about 150 frozen
.
food items and whose peak daily volume of sales approximates 1,000 cases
might give consideration to a single 88-foot order -assembly line for
zero -room operations. The 88-foot line provides 28 feet of additional
conveyor table, and bin space, above that provided in one of the 60-foot
dual lines, for stocking the 50 additional items handled. For a whole-
saler with a peak daily volume of 1,000 cases, dual 88-foot lines are not
recommended. If used, each order filler's station would measure kk linear
feet which is considerably longer than desired. It is important to main-
tain the proper ratio between the average number of items per order and
the length of each order filler's work station. However, space should be
provided and the original line should be arranged so that an additional
line may be installed when the volume of business increases to the point
where additional order fillers are required
31
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are separated by a 6-foot feeder aisle. The storage capacity of the room,
not including space for holding assembled orders, is about ^,000 cases.
The same size crew--U order fillers and 1 checker--is used for the
single 68-foot line as that used in the dual line operation. The line is
divided into k stations of roughly 22 feet each. The method used in filling
orders is also identical to the method described for the dual line.
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TO CHUTES
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deep and forming a total length of 100 feet are arranged along the wall
opposite the chute doors. Single "bins of the type shown in figure 10
occupy 12 inches of the depth of the work table surface, the remaining
1^ inches being reserved for working space. A line of 12 -inch gravity
roller -type conveyors parallels the work tables for their entire length
and have a 15 -foot projection from the end of the order- assembly line
on which orders are held for checking. The conveyor line is separated
from chute doors by an aisle, roughly 3 feet in width, which provides
the work area for order fillers . Chute doors and facings , and removable
partitions, make up 100 feet of the side of the assembly room adjacent
to the storage room.
Working stocks of frozen food items are moved from the storage room
to the order -assembly room through refrigerated chutes of the type shown
in figure 13. Chutes are 2 feet wide, I5 feet high, and, if constructed
with floors of 1- by 2 -inch maple wood slats, 6 feet deep. If gravity
conveyor sections are used in lieu of wood slats, the chutes may be 8 feet
deep. Chutes of 6-foot depth hold 8 to 10 cases, on side. Chutes are
arranged one ahove the other with the lower edges of the doors 20 inches
and 3S inches above the floor level. The chutes should slope toward the
front with a pitch of 12° for those with wood floors and 5° for those
with gravity conveyor floors. With a 12° pitch, the end of an upper
6 -foot chute in the storage room would be h feet k^ inches above floor
level and would necessitate the use of an 8-inch step in stocking operations
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- 36 -
type of equipment, about 50 round trips between the stacks and the bins
will be necessary and will involve 2,000 separate handlings, or 2 for
each case.
TRUCKS
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Figure 14. --Layout for a warm-room palletized, order -assembly operation (including
storage), designed for a wholesaler stocking 150 items and having a peak daily
volume of 1,000 cases. A shorter assembly line would be suitable if only
100 items were stocked.
. . .
- 38 -
Warm-Room Operations
The larger the volume above 1,000 cases per day the greater the
incentive will be for increasing the productivity of labor through a warm-
room palletized operation. However, an exception to this rule might be
made with respect to wholesalers handling over 150 items. When the number
of items handled is increased considerably above 150, the advisability of
warm-room palletized operations, both from the standpoint of protecting the
product against rises in temperature and productivity of labor, becomes
questionable
.
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- 39
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of the dealers in one city in one facility creates a wholesale frozen food
market comparable in some respects to a wholesale produce market. This
arrangement permits the combined storage of the wholesalers' reserve stocks
and provides special facilities for performing other wholesale operations.
quantity needed for 1-day' s operations. Extending across the top of the
full width of the store units is a heavy, we 11 -supported, steel screen
that permits the space above to be used by the warehouse for the general
storage of miscellaneous merchandise.
Since the size and type of wholesale organizations that might rent
space in such facilities could change considerably over a period of 1 or
2 years, the recommended layout has removable interior partition wails,
"extra" doors are provided, and provisions are made for partitioning off
parts of the general storage room. Because of the high degree of flexi-
bility provided, the warehouseman could rent facilities to wholesalers
who need or prefer zero (0° F.) space, or the same area might be rented
to wholesalers who assemble orders in warm rooms. Distributors who
assemble orders in rooms with temperatures of 30° to ko F., or warmer,
-
- *3
GLNLTLf\L
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Figure 17. --Floor plan of a specially designed public warehouse that provides
operating facilities for several small wholesale distributors and consolidates
storage of reserve stocks. A warehouse with this general floor plan actually
exists and is in operation.
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- 1+6 -
For ease and speed of travel, the floor of the warehouse including
the platform should have a smooth surface --preferably of reinforced concrete.
Slopes or grades which would interfere with the free movement of materials -
handling equipment should be kept to a minimum and should be eliminated
where the cost will not be prohibitive. If possible, warehouse floors
should consist of a single flat surface, or with sufficient slope to pro-
vide adequate drainage, throughout those sections served by handling
equipment. In remodeling old buildings the insulating of floors frequently
raises the floor -level in freezer rooms 12 to 18 inches above the level of
the uninsulated part of the building. In such cases it is sometimes necess
sary to build up the floor level of shipping and receiving areas so that
merchandise can be moved on a level plane. It is especially important to
have the floors in the receiving area built up to the same level as the
storage room floors. If not built up, additional manpower may be required
to move products "up hill" by way of ramps. Out -bound merchandise moving
down a ramp from the order -assembly room to the shipping area may not re-
quire additional manpower for handling but a safety hazard is usually
involved in moving loaded equipment up and down sharp inclines
Adequate load capacity should be built into all floors. This capacity
will vary depending on the type of equipment used and the load it carries,
and the weight of the merchandise and the stacking heights. Particular
consideration should be given to floor-load capacity when floors are built
above the ground level or above a filled surface. If heavy industrial -type
trucks are to be used, the floor load capacity must be considerably greater
than when four-wheel hand trucks are used. From the standpoint of materials
handling operations doorways should be located so as to provide as near as
possible a straight -line movement between two rooms or areas which they
link. The height and width should be sufficiently large to permit easy
movement through them of materials -handling equipment loaded with the
largest load to be handled. Narrow doorways and aisles can bottleneck
operations in a plant that is otherwise efficiently laid out . In the sections
of the plant where frozen food products will be manually handled, and where
large industrial trucks will not be used, doors should be about 6 feet wide.
Where mechanical equipment is to be used, doors should be 8 to 10 feet wide
and sufficiently high to clear the masts or guard frameworks of industrial
trucks. Labor saving devices can be installed which will open and close
doors automatically.
.
- ^7 -
- kQ
Platform trucks can be used with a high degree of efficiency for many
tasks: For unloading railroad cars and motortrucks; for moving merchandise
from storage to the order assembly line; for making up or filling orders; and
for loading delivery trucks. When not in use for performing other handling
jobs, they may be used for temporary storage, such as holding assembled
orders overnight
- ^9
Conveyors
- 50 -
Loading Pallet
Refrigerator Car
b::: :ra
I
z-f.-j\ "Forklift Truck
Loaded Pallet-! 1—
11 I
- - "i"-T-
Figure 22'~"Full conveyor system with curved section allowing pallet to be loaded
next to stowed packages in car and moved to a position outside the car convenient
for fork-lift truck handling.
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1
Figure 23. --Pallet dolly in position for transfer of loaded pallet to conveyor for
removal from railroad car doorway by fork-lift truck.
.
-
- 51
Unit Load
Lift trucks (riding or powered walkie type) and pallets, semilive skids
and jacks, and skids and pallets used with low-lift and high-lift pallet or
platform hand-lift trucks are the principal types of materials -handling
equipment which permit the utilization of the unit-load principle. 1/ Fig-
ure 2k shows three types of equipment used in handling unit loads. There
are other types available for unit -load handling, but some of these are
either variations of those named or are not adaptable to the facilities of
frozen food distributors.
Figure 24* --Three examples of equipment used to handle unit loads. A. -Fork- lift
truck transporting loaded pallet. B. -Powered walkie low- lift fork truck.
C.-Semilive skid loaded with 36 boxes of frozen turkeys. Hand jack is used to
lift "dead " end of skid and provide mobility.
.
- -
53
of labor. Where ceilings are low and head room limited, semilive skids
and jacks or dead skids and low-lift platform trucks might he used to
advantage
- 5^ -
Equipment should be kept in good repair at all times. One person should
be made responsible for properly maintaining the equipment, including check-
ing and lubricating at intervals as required. A good preventive maintenance
program- -lubrication, inspection (anticipation of repairs) --should be
installed in all plants. Such a program reduces total maintenance costs
and the time during which equipment is out of operation, and prolongs the
useful life of equipment
- -
55
Interrelation of Sections
57
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- 53 -
Office Space
The main office should be located near the main entrance to the plant
for convenience to the public. It should also be near the order-assembly
room so that close liaison can be maintained with the order-assembly and
warehouse crews. The business office for a medium-sized or large distribu-
tion plant might be separated into several offices or sections including a
reception hall or room located at the main entrance to the office area,
private offices as required, and a salesmen's meeting and work room. In
small plants all the features discussed above might be centralized in one
room.
A small office for the foreman near both the order-assembly room and
the business office is desirable in both large and medium-sized plants. Such
an office might include a closet in which to keep heavy clothes for use in
the zero room and other supplies for immediate use. The foreman's office
might be separated by glass partitions from the business office and the order-
assembly room or shipping area. For most plants the total area of the offices
should not exceed 10 percent of the total plant floor area.
Auxiliary Facilities
Communications
- 60 -
Cost of Land
utilities should be considered along with the cost of the land itself in
determining the total cost of a site. Sufficient land should be acquired
to meet present needs and provide for possible future expansion.
A fresh fruit and vegetable wholesaler who also handles frozen foods
may find it more desirable, from the viewpoint of his fresh produce busi-
ness, to locate his entire operation on a wholesale produce market. Such
a location might also be desirable if he sells to buyers coming to such a
market to obtain other products. In addition, a fresh meat wholesaler
who operates in a public refrigerated warehouse may find advantages in
locating his frozen food business in the same facilities.
Prepackaging Spinach and Kale (PMA - University of Maryland - 1951), Bulletin A-63
Frozen Food Research in the U. S. Department of Agriculture (PMA - 1952)
Planning a Wholesale Frozen Food Distribution Plant (PMA - 1952)
Use of Fruits by Chicago Bakers ( BAE - 1951), Agri . Inf. Bui. No. 42, 50? ea. 1/
Price Relations between Methods of Sale of Florida Valencia Oranges (BAE - 1951)
New Concentrated Apple Juice - Its Appeal to Consumers (BAE - 1951)
The Marketing and Transportation Situation (BAE)
(A) Marketing Cost and Margins for Frozen Foods, August 1950 issue
(B) Processing Cost and Margins, May 1951 issue
(C) Shifts in marketing Oranges from Fresh to Processed Form, November 1951 issue
Home Freezers - Their Selection and Use (BHNE - 1949), Misc. Pub. No. 687, 10<£ ea. 1/
The Relation Between Locker Plants and Home Freezers in the Distribution of Frozen Foods
in Arizona, Part I, 2950 (PMA); Quantity Buying for Home Freezer Storage, Part II,
(PMA - University of Arizona), 1952
Frozen Food Locker Plants - Location, Capacity, Rates, and Use, ( FCA - BAE - 1951)
Periodicals
(A) Cold Storage Holdings - Monthly and Annual Summaries (PMA)
(B) Consumer Fruit and Juice Purchases - Monthly and Quarterly Summaries (PMA - BAE)
(C) Consumer Buying Practices for Selected Fresh Fruits, Canned and Frozen Juices,
and Dried Fruits Related to Family Characteristics, Region, and City Size
(PMA - BAE)
(D) Fruits and Juices Availability in Retail Food Stores (PMA)
(E) Marketing Margins for Florida Oranges in 10 Major Cities - Monthly (PMA)