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 what is the total demand rate

Explanation:

we will begin by carefully following a step by step order;

Total time in a week = 40 hours = 2400 minutes

Total time Administrator is utilized = 50 * 20 = 1000 minutes

Total time Senior accountant is utilized= 20% * 50 * 40 = 400 minutes

Total time Junior accountant is utilized = 40%*50*15 = 600 minutes

For Total cases, Total capacity = Total time / Bottlenck time (Administrator) = 2400 / 20 = 120 cases

C-3) Capacity of new customers at 20:80 ratio = 20% * 120 = 24 cases

C-4) Capacity of repeat customers at 20:80 ratio = 20%*120 = 96 cases

c-1 = Flow rate = min ( demand, capacity) for new customers = 10 new cases / week (20%*50)

c-2 = Flow rate = 40%*50 = 40 cases / week

c3 = 24 cases

c4 = 96 cases

cheers i hope this helps

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