A mortgage service office has the following four activities involved in approving a loan application. Note...

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A mortgage service office has the following four activitiesinvolved in approving a loan application. Note that a working dayis 8 hours and there are 60 minutes in one hour.

ActivityTime (minutes)
A. Property survey20
B. Credit report20
C. Title search40
D. Final decision30
  • Solution inputs are numbers only, no symbols. Percentage iskept as 0.76 instead of 76%.
  • Numbers can be in the format of either 3000 or 3,000; 0.95 or.95
  • Keep two decimals if not exact, do not round. For example,3.24923... will be kept as 3.24, but the exact value of 0.625 willbe kept as 0.625

1. If each activity is performed by a different person, withfour employees, what would be the maximum number of loanapplications the office can process per day?   Andwhat is the office's direct labor utilization (DLU) ?

2. Activities B and C are combined together and assigned to twoemployees, while the other two employees are responsible foractivities A and D respectively. What would be the maximum numberof loan applications the office can process perday?   And what is the office's direct laborutilization (DLU) ?

3. The office now has only three employees, activities B and Care combined together and assigned to one employee, while the othertwo employees are responsible for activities A and D respectively.Under this setting, what would be the maximum number of loanapplications the office can process perday?    And what is the office's direct laborutilization (DLU) ?  

4. The office now has only three employees, activities A, B andC are combined together and assigned to two employees, while theother employee is responsible for the last activity D . Under thissetting, what would be the maximum number of loan applications theoffice can process per day?    And what is theoffice's direct labor utilization (DLU) ?  

5. With three employees, every employee can perform any activityand more than one activity. Under this setting, What would be themaximum number of loan applications the office can process perday?   And what is the office's direct laborutilization (DLU) ?  

Answer & Explanation Solved by verified expert
3.9 Ratings (571 Votes)
ANSWER 1 Total avaialbe hour is 86041920 hours Bottleneck activity is 40 min activity C hence total output will be only 12 Therefore with 12 output only 1320 hours direct labour is utilized which means it is 06875 DLU    See Answer
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