# GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV

## Question:

GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey to its customers, asking for the information required for preparing the tax statements. Based on 50 years of experience, GV categorizes its cases into the following two groups:

• Group 1 (new customers): 20 percent of cases
• Group 2 (repeat customers): 80 percent of cases

This year, there are 50 income tax statements arriving each week. In order to prepare the income tax statement, GV has three resources. The activities are carried out by the following three persons who each work 40 hours per week:

• An administrative support person who processes every tax statement.
• A senior accountant (who is also the owner) who processes only tax statements for new customers.
• A junior accountant who only processes tax statements for repeat customers.

(a) What is the total demand rate for each of the three resources?

(b) Which of the three persons is the bottleneck given the processing times listed in the following table?

(c) For a mix of 20:80 between new and old cases, what is the flow rate and what is the capacity?

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Related Book For

## Operations Management

ISBN: 9781260547610

2nd Edition

Authors: Gerard Cachon, Christian Terwiesch

Question Details
Chapter # 5
Section: Problems and Applications
Problem: 1
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