Processing times for both groups and all resources are shown in the table below.

Question

Processing times for both groups and all resources are shown in the table below. Assume that everyone works 40 hours per week a. Which of the three persons is the bottleneck? Administrator Senior accountant Junior accountant b. For a mix of 20: 80 between new and old cases, what is the flow rate for new customers? new cases per week c. For a mix of 20: 80 between new and old cases, what is the flow rate for repeat customers? new customers per week d. For a mix of 20: 80 between new and old cases, what is the capacity for new customers? cases per week e. For a mix of 20: 80 between new and old cases, what is the capacity for repeat customers? cases per week

Explanation / Answer

Solution:

a. 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

There are 50 cases 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 Therefore 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%

Utilization of Administrator is maximum. Therefore it is the bottleneck resource for 20:80 mix of New and Repeat cases.

b. Flow rate of New cases per week = 50*20% = 10 cases per week

c. 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 per week

e. Capacity for Repeat customers = 120*80% = 96 per week

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.