Study Notes †Balance management Essay

Customer Flow Taco Bell serves on fairish 1,500 clients per day (15 mins). On medium there are 75 customers in the restaurant (waiting to place the order, waiting for the order to arrive, eating, etc.). How long does an average customer spend at Taco Bell and what is the average customer swage?R=1,500 customers/day I=75 customers T=I/R=(75 cus/1,500 cus/day)x(15 hrs/day)x(60min/hr)=45 minutes Customer turnover=1/T=(1/45 min)x(60 min/hr)x(15 hrs/day)=20 times per dayJob Flow The Travelers amends Company processes 10,000 claims per year. The average processing time is 3 weeks. Assuming 50 weeks in a year, what is the average number of claims in process? R=10,000 claims/yr T=(3 weeks)/(50 weeks/yr)=3/50 yr I=RT=(10,000 claims/yr)(3/50 yr)=600 claimsMaterial Flow McDonaldss holds sensitive hamburger meat an average of three years before its cooked and sold to customers. The typical inventory of raw meat is 2,500 lb. What is the average amount of hamburger McDonalds goes through in a week and what is the takt time of processing hamburger in a 15-hour day? R=I/T, R=?, T =3 days=3/7weeks, I=2500lbs, R=2500lbs/ 3/7weeks R=5,833lbs/week, Takt =1/R 1/5833 lbs/week x 7days/week x 15hr/day x 60min/hour = 1.08min/lb means none of the processes can take more(prenominal) than 1.08minMonetary Flow For the new Euro introduction in 2002, Wim Duisenberg had to decide how galore(postnominal) new Euro coins to stamp by 2002. Eurolands central banks cash-in-coins handling was estimated at 300 billion per year.The average cash-in-coins holding time by consumers and businesses was estimated at 2 months. How many Euro coins were to be made? R=300 B/yr T=(2 months)/(12 months/yr)=1/6 yr I=RT=(300 B/yr)x(1/6 yr)=50 BCash Flow (Accounts Receivable) A interlocutor sells $300 million worth of clothes and accessories to retailers per year. The average accounts receivable is $45 million. What is the average billing to collection process cycle time? T=I/R=($45 M/$300 M/yr)x(52 wks/y r)=7.8 weeksA general manager at Baxter states that her inventory turns three times a year. She also states that everything that Baxter buys gets processed and leaves the docks within six weeks. Are these statements consistent? No, because if the lam time is 6 weeks, then inventory turns should be 1/T=(1/6 wks)x(52 wks/yr)=8.7 turns/year.1. Registration fairish gillyflower = 20, Throughput = 20 per hour, bonny fertilize time = 20 / 20 = 1 hourTriageAverage caudex = 5, Throughput = 20 per hour,Average flow time = 5 / 20 = 0.25 hour, restrainAverage Inventory = 10, Throughput = 5 per hour(25%of20),Average flow time = 10 /5 = 2 hoursAverage time spent by hoi polloi admitted = 1 + 0.25 + 2 = 3.25 hoursRoutine Average inventory = 10, Throughput = 15 per hour (75%of20),, Average flow time = 10/15 = 0.6667 hourAverage time spent by routine care patients = 1 + 0.25 + 0.6667 = 1.9167 hours Average time in ER for all patients = 0.25(3.25) + 0.75(1.9167) = 2.25 hours OR2. In this discipl ine we have Average Inventory = 20 + 5 + 10 + 10 = 45, Throughput = 20 per hour, Average flow time = 45 / 20 = 2.25 hours.Inventory turns can be calculated using financial statements by dividing COGS (R) by average inventory value (I), linking flow time (an operational measure) to financial measures.With a decrease in total assets (such as inventory, accounts receivable, and plant & equipment), proceeds on assets (ROA) improves.Flow Time = Inv/COGSInv Turns= COGS/Inv