Assume that a loan processing center receives on line applications for loans. Ea
ID: 425598 • Letter: A
Question
Assume that a loan processing center receives on line applications for loans. Each application needs 3 operations each requiring 5 minutes for completion of loan processing (may be approving or rejecting). The organization prints the applications and sends in a group/ batch of 10 applications for operations 1(Credit checking), then to operation 2(covenant preparation), and finally to 3(approving and preparing check based on resource availability). Ignoring the set up time and time to move the application from one operation to the next, in how much time will the processing of the batch be completed?
Explanation / Answer
Batch size of application = 10
Total time required at operation 1 = 5 minutes/ application x 10 applications = 50 minutes
Total time required at operation 2 = 5 minutes/ application x 10 applications = 50 minutes
Total time required at operation 3 = 5 minutes/ application x 10 applications = 50 minutes
Therefore total processing time required for 3 operations for 10 applications
= 50 + 50 + 50 minutes
= 150 minutes ( 2 . 5 hours )
PROCESSING OF THE BATCH WILL BE COMPLETED = 2.5 HOURS
PROCESSING OF THE BATCH WILL BE COMPLETED = 2.5 HOURS
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