Tour Search Annotations Accessibility Bookmark Case Problem 2. Yeager National Bank Using aggressive mail promotion with low introductory interest rates, Yeager National Bank (YNB) built a large base of credit card customers throughout the continental United States. Currently, customers who mail their payments to YNB send their regular payments to the bank's corporate office located in Charlotte, North Carolina. Daily collections from customers making their regular payments are substantial, with an average of approximately $600,000. YNB estimates that it makes about 15% on its funds and would like to ensure that customer payments are credited to the bank's account as soon as possible. For instance, if it takes five days for a customer's payment to be sent through the mail, processed, and credited to the bank's account, YNB has potentially lost five days' worth of interest income. Although the time needed for this collection process cannot be completely eliminated, reducing it can be beneficial given the large amounts of money involved. Instead of having all its credit card customers send their payments to Charlotte, YNB is considering having customers send their payments to one or more regional collection centers, referred to in the banking industry as lockboxes. Four lockbox locations have been proposed: Phoenix, Salt Lake City, Atlanta, and Boston. To determine which lockhoxes to onen and where lockbox customers should send their navments YNR divided its Case Problem 1. Textbook Publishing Case Problem 3. Production Scheduling with Changeover Costs Previous page Next page Tour JUULLIMI Warrangement SCC Quantitative TT Approach Quick Print Search Annotations Accessibility Bookman determine which lockboxes to open and where lockbox customers should send their payments, YNB divided its customer base into five geographical regions: Northwest, Southwest, Central, Northeast, and Southeast. Every customer in the same region will be instructed to send his or her payment to the same lockbox. The following table shows the average number of days it takes before a customer's payment is credited to the bank's account when the payment is sent from each of the regions to each of the potential lockboxes: Location of Lockbox Salt Lake Daily Collection ($1000s) Customer Zone Phoenix City Atlanta Boston 4 2 4 4 80 Northwest Southwest 2 3 4 6 90 Central 5 3 3 4 150 Northeast 5 4 3 2 180 Southeast 4 6 2 3 100 Next revious page Case Problem 1. Textbook Publishing Case Problem 3. Production Scheduling with Changeover Cc Northeast 5 2 180 Southeast 4 6 2 3 100 Managerial Report Dave Wolff, the vice president for cash management, asked you to prepare a report containing your recommendations for the number of lockboxes and the best lockbox locations. Mr. Wolff is primarily concerned with minimizing lost interest income, but he wants you to also consider the effect of an annual fee charged for maintaining a lockbox at any location. Although the amount of the fee is unknown at this time, we can assume that the fees will be in the range of $20,000 to $30,000 per location. Once good potential locations have been selected, Mr. Wolff will inquire as to the annual fees. 1 threaded Discussion ssignment #6 Choose one of the three case problems at the end of Chapter 7 and discuss the pros and cons of using such a model to solve a real world problem. You do not need to formulate the problem. Just describe in relative details what would a manager gain by using the model and what possible aspect of real world situation would be missed by using the model. This assignment is worth 1% of your grade and is due by 11:30 p.m. Saturday March 6, 2021. Disp Tour Search Annotations Accessibility Bookmark Case Problem 2. Yeager National Bank Using aggressive mail promotion with low introductory interest rates, Yeager National Bank (YNB) built a large base of credit card customers throughout the continental United States. Currently, customers who mail their payments to YNB send their regular payments to the bank's corporate office located in Charlotte, North Carolina. Daily collections from customers making their regular payments are substantial, with an average of approximately $600,000. YNB estimates that it makes about 15% on its funds and would like to ensure that customer payments are credited to the bank's account as soon as possible. For instance, if it takes five days for a customer's payment to be sent through the mail, processed, and credited to the bank's account, YNB has potentially lost five days' worth of interest income. Although the time needed for this collection process cannot be completely eliminated, reducing it can be beneficial given the large amounts of money involved. Instead of having all its credit card customers send their payments to Charlotte, YNB is considering having customers send their payments to one or more regional collection centers, referred to in the banking industry as lockboxes. Four lockbox locations have been proposed: Phoenix, Salt Lake City, Atlanta, and Boston. To determine which lockhoxes to onen and where lockbox customers should send their navments YNR divided its Case Problem 1. Textbook Publishing Case Problem 3. Production Scheduling with Changeover Costs Previous page Next page Tour JUULLIMI Warrangement SCC Quantitative TT Approach Quick Print Search Annotations Accessibility Bookman determine which lockboxes to open and where lockbox customers should send their payments, YNB divided its customer base into five geographical regions: Northwest, Southwest, Central, Northeast, and Southeast. Every customer in the same region will be instructed to send his or her payment to the same lockbox. The following table shows the average number of days it takes before a customer's payment is credited to the bank's account when the payment is sent from each of the regions to each of the potential lockboxes: Location of Lockbox Salt Lake Daily Collection ($1000s) Customer Zone Phoenix City Atlanta Boston 4 2 4 4 80 Northwest Southwest 2 3 4 6 90 Central 5 3 3 4 150 Northeast 5 4 3 2 180 Southeast 4 6 2 3 100 Next revious page Case Problem 1. Textbook Publishing Case Problem 3. Production Scheduling with Changeover Cc Northeast 5 2 180 Southeast 4 6 2 3 100 Managerial Report Dave Wolff, the vice president for cash management, asked you to prepare a report containing your recommendations for the number of lockboxes and the best lockbox locations. Mr. Wolff is primarily concerned with minimizing lost interest income, but he wants you to also consider the effect of an annual fee charged for maintaining a lockbox at any location. Although the amount of the fee is unknown at this time, we can assume that the fees will be in the range of $20,000 to $30,000 per location. Once good potential locations have been selected, Mr. Wolff will inquire as to the annual fees. 1 threaded Discussion ssignment #6 Choose one of the three case problems at the end of Chapter 7 and discuss the pros and cons of using such a model to solve a real world problem. You do not need to formulate the problem. Just describe in relative details what would a manager gain by using the model and what possible aspect of real world situation would be missed by using the model. This assignment is worth 1% of your grade and is due by 11:30 p.m. Saturday March 6, 2021. Disp