A major manufacturer bills (invoices) $300 million worth of their cellular equipment per year to customers....

 

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A major manufacturer bills (invoices) $300 million worth of their cellular equipment per year to customers. The average amount in accounts receivable (awaiting payment from customers) is $45 million. Determine the average amount of time elapse from when a customer is billed, to when payment is received. 1. What is the flow unit? 2. What word(s) in the above question imply a "stable process"? 3. Knowing this is a stable process we can apply little's law: I = RXT 4. Which variable do you need to determine? 5. List the variables you have been given: |= R= T= 6. Solve the answer to the question. A major manufacturer bills (invoices) $300 million worth of their cellular equipment per year to customers. The average amount in accounts receivable (awaiting payment from customers) is $45 million. Determine the average amount of time elapse from when a customer is billed, to when payment is received. 1. What is the flow unit? 2. What word(s) in the above question imply a "stable process"? 3. Knowing this is a stable process we can apply little's law: I = RXT 4. Which variable do you need to determine? 5. List the variables you have been given: |= R= T= 6. Solve the answer to the question.

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1 The flow unit is the cellular equipment being billed to customers ... View the full answer