Please explain how did you get the answers The mortgage loan office of Zions Ban
ID: 2419760 • Letter: P
Question
Please explain how did you get the answers
The mortgage loan office of Zions Bank receives lots of home mortgage loan applications from Utah and Idaho each year. On average, every day, there are 300 applications that need to be processed. First, all applications have to go through Department A, which can process 250 applications per day. Then 60% of all applications go to Department B, because these applications are from low income households. Department B can process 160 applications per day. The remaining 40% of applications from middle and high income households go to Department C, which can process 80 applications per day. Finally, all applications have to go to Department D, which can process 250 applications per day. Calculate the implied utilization of Departments A, B, C and D. Which department is the bottleneck? What is the capacity of the process? What is the flow rate of the process? Implied Utilization of a Resource = Demand/Resource Capacity Flow rate = min{Demand, Process Capacity}Explanation / Answer
a) Implied utilization = demand / capacity
b) Clearly the bottleneck is department c because its Implied utilization is higher than other departments.
c) Flow rate is 240 applications per day i.e 160+80
Department Demand Capacity Implied utilization A 300 250 1.2 B 150 160 0.9375 C 100 80 1.25 D 300 250 1.2