What is the probability of processing bills within 4 hours

Assignment Help Operation Management
Reference no: EM13230111

A bank has recently taken over the billing function of a company. An agreement stipulates that the bank should process 99.2% of the bills within 4 hours. A study of the current process indicates that the processing time averages 2.2 hours per bill with a standard deviation of 0.8 hours. A process improvement team has suggested a change. Experiments indicate that the change will lower the average processing time to 2 hours, but will raise the standard deviation to 1.2 hours.

a.) With the new system, what is the probability of processing the bills within 4 hours?

b.) With the current system, what is the probability of processing the bills within 4 hours?

c.) Should you change systems

 

Reference no: EM13230111

Questions Cloud

What is the average time a car is in the system : Automobiles arrive at the drive-through window at the downtown Urbana, Illinois, post office at the rate of 4 every 10 minutes. The average service time is 2 minutes. The Poisson distribution is appropriate for the arrival rate and service times a..
What is the economic production quantity : At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 300 per day, and it uses these subcomponets at a rate of 12,500 per year (of 250 working days). Holding costs are $2 per item per year, and ordering..
What is the reflection coefficient away from the load : A terminated transmission line with Z0 = 60 ohm has a reflection coefficient at the load of = 0.4 60. (a) What is the load impedance (b) What is the reflection coefficient 0.3 away from the load (c) What is the input impedance at this point
The evolution of e-marketing tools : The Evolution of E-Marketing Tools
What is the probability of processing bills within 4 hours : With the new system, what is the probability of processing the bills within 4 hours?
Find line and load voltages n turns ratio and total apparent : A ideal transformer is rated at 4800/480 volt, at 75KVA. it is connected as a step down auto transformer. find the line and load voltages, turns ratio and total apparent, real and reactive power at full load and at 60% rated load at a power factor..
Write a program that asks the user to respond to a question : Write a program that asks the user to respond to a question by entering either 1 for yes or 2 for no.
Creates a database named personnel : Write an application that creates a database named Personnel. The database should have a table named Employee, with columns for employee ID, named position, and hourly pay rate.
How the roe can be improved : Explain why is it important to pay more attention to the firm's ROE if you ar the firm's shareholder (investor) and explain how to use the DuPont equation to see how the ROE can be improved?

Reviews

Write a Review

Operation Management Questions & Answers

  Determine the recommended order quantity

The GAC company is considering the purchase of a special shipment of portable air conditioners manufacted in japan. each unit will cost 80 and it will be sold for 125.

  Calculating the seasonal index

A seasonal index for a monthly series is about to be calculated on the basis of the past four years' accumulation of data. the four previous July values were 110, 135, 125, and 130.

  What are the forces for global convergence in a labor system

What are the forces for global convergence in a labor system? What are the forces for a labor system to maintain divergence or establish a divergent system?

  Decide how many to produce for an upcoming event

Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for an upcoming event

  Compare the models and information found

Compare the models and information found with Nonaka's Theory of Knowledge Creation. Consider ways knowledge creation works in an organizations. Describe how to transition the individuals and the organization as a rule using learning, knowledge, a..

  What measures will you put in place to protect the content

Will this type of class be better or worse than a traditional class? Will security measures be necessary for the wireless classes? If so, what measures will you put in place to protect the content?

  In what ways are the strategic management of business

In what ways are the strategic management of business and military strategy alike? In what ways are they different?

  Calculate the total amount of uncommitted inventory

In the following schedule, what is the total amount of uncommitted inventory that the company can promise to new customer requests for the month of June?

  Describe the demand chain and supply chain of target

Describe the demand chain and supply chain of Target Corporation. How do they stay ahead of their competition? What are their product and services specifications?

  Discuss the implications for supply chain leadership

Discuss the implications for supply chain leadership as their focus shifts from minimizing total supply chain cost to maximizing firm sustainability.

  The snack food association publishes an annual state

The Snack Food Association publishes an annual State of the Industry report that can be found at sfa website Based on information in the latest State of the Industry report

  Explain while purchasing what colour displays to be used

Each display costs $18.80 also there is an ordering cost of $75 regardless of size of order. Company uses a stock-out cost of $400 per display also 40% of annual interest rate is used to compute holding costs. HK works 52 weeks in a year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd