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ID: 368709 • Letter: O
Question
o asmaccounting m support we my in du s n her p a on of an ualno neta a emerte Every De mber, OV se d out a statements Based on 50 years of experience, GV categorizes their cases into the Sollowng two groups t su yto ter o mers, a ngumit en egendfo mane htt Group 1 (new customers) 20% of cases Group 2 Oepeat customers) 80% of cases This year, there are 50 income tax statements amiving each week in arder to propare the income a stotesent, GV has three resources The activities are camed out by the tolowing three persions n administrative support person that processes every tax statement Senior accountant (who is also the owner) who processes only tax statoments for ew customers ·Juror accontart who only processes tax statmterts or repeat custeren Processing times for both groups and all resources are shown in the tabile below Assume that everyone works 40 hours per week Administrator Handiing by senior Handling by Group [min/unit countant junior 40 n/a 20 a. Which of the three persons is the bottleneck OSenior accountant OJunior accountant b. For a mix of 20 80 betwoon new and old cases, what is the ow rate for new customees? new cases For a mix of 20 80 betweon new and old cases, what is the ow rate for repeat customers? new customors per week For a mix of 20.80 between new and old cases. what is capacity for new customers? cases per week For a mix of 20 80 between new and old cases what is the capacity for repeat customers? cases per weekExplanation / Answer
a) Which of the three persons is a bottleneck:
In order to find bottleneck resource, we need to determine the utilization of each resource
Processing capacity of Administrator = Available time per week / Processing time = 40*60/20 = 120 cases per week
Since there are 50 cases (income tax statements) arriving per week.
So utilization of Administrator = 50/120 = 41.7%
Processing capacity of Senior accountant = 40*60/40 = 60 cases per week.
New cases are 20% of 50 cases per week.
So, utilization of Senior accountant = 20%* 50/60 = 16.7%
Processing capacity of Junior accountant = 40*60/15 = 160 cases per week.
Repeat cases are 80% of 50 cases per week.
Therefore, utilization of Junior accountant = 80%*50/160 = 25%
The utilization of Administrator is maximum, and junior accountant is minimum. Therefore it is the bottleneck resource for 20:80 mix of New and Repeat cases.
b. The flow rate of New cases per week = 50*20% = 10 cases per week
c. The flow rate of Repeat cases per week = 50*80% = 40 cases per week
d. In (a) we have seen that for 20:80 mix between new and repeat cases, Administrator is the bottleneck resource with a capacity of 120 cases per week. Therefore capacity for new cases = 120*20% = 24 cases per week
e. Capacity for Repeat customers = 120*80% = 96 cases per week
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