In a company that processes insurance claims, the aver- age flow rate is 10 claims per hour and the average throughput time is six hours.a. How many claims are in the system on average?b. If the demand for claims to be processed is seven per hour and the capacity is eight per hour, what is the flow rate?c. What assumptions have you made in your answers?
In a company that processes insurance claims, the aver- age flow rate is 10 claims per hour and the average throughput time is six hours.a. How many claims are in the system on average?b. If the demand for claims to be processed is seven per hour and the capacity is eight per hour, what is the flow rate?c. What assumptions have you made in your answers?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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In a company that processes insurance claims, the aver- age flow rate is 10 claims per hour and the average throughput time is six hours.
a. How many claims are in the system on average?
b. If the demand for claims to be processed is seven per hour and the capacity is eight per hour, what is the flow rate?
c. What assumptions have you made in your answers?
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