(3a). Consider a bank where loan applications are first reviewed by a credit ana
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Question
(3a). Consider a bank where loan applications are first reviewed by a credit analyst, and then by a loan officer. The credit analyst takes 6 minutes to review each application, and the loan officer takes 16 minutes for each application. Both start the day with no other work. A batch of 5 applications is delivered to the credit analyst at the start of the day. Assuming that the credit analyst gives each application AS SOON AS IT IS REVIEWED to the loan officer, how long (in minutes) does it take for the batch to be completed (by both the credit analyst and the loan officer)? (b). Consider an activity with these estimates for optimistic, most likely, and pessimistic time: 8, 18, 31. Find the mean value of the activity time. (Provide two significant digits to the right of the decimal point)Explanation / Answer
(3a)
The credit analyst takes 6 minutes to review the first application and 6*5 = 30 minutes to review all the 5 applications. Loan officer receives the first application for review at the end of 6 minutes, after it is reviewed by the loan officer. Thereafter, the loan officer receives the application every 6 minutes. He takes 16*5 = 80 minutes to review all the 5 applications. SO total flow time to complete the batch = 6 + 80 = 86 minutes.
(b) Mean value of the activity time = (8+4*18+31)/6 = 18.50
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