Question

Each bank teller workstation is forecasted to process 400 transactions (the end-item) on Friday. The bank is open from 9 a.m. to 7 p.m. on Friday with 90 minutes for lunch and breaks. Three teller windows are open on Friday. A work-study analysis reveals that the breakdown of the transaction mix is 40 percent deposits, 45 percent withdrawals, and 15 percent transfers between accounts. A different form is used for each type of transaction, so there is one despots slipper deposit, one withdrawal slip per withdrawal, and two transfer slips per transfer. 1. How many transfer slips are needed on Friday? 2. How many withdrawal slips are needed on Friday? 3. Deposit slips are delivered every second day. If the on-hand balance of deposit slips is 50 at this bank, how many deposit slips should be ordered? 4. What is the end-item and component part in this bank example? 5. What are the implications of having too many or too few deposit, withdrawal, and transfer slips? Explain.

Answer 1

1.      How many transfer slips are needed on Friday?

There are three workstations in the bank, each teller has 400 transactions, transfer between the accounts is 15% and for transfer transactions total slips required is two.

So Total slips required on Friday =3*400*0.15*2 =360

So the correct answer is 360 slips will be required on Friday.

2. How many withdrawal slips are needed on Friday?

There are three workstations in the bank, each teller has 400 transactions, transfer between the accounts for the withdrawal is 45% and for withdrawal transactions, total slips required is one.

So Total slips required on Friday =3*400*0.45*1 = 540 slips

So the correct answer is 540 slips will be required on Friday for the withdrawal transactions.

3. Deposit slips are delivered every second day. If the on-hand balance of deposit slips is 50 at this bank, how many deposit slips should be ordered?

There are three workstations in the bank, each teller has 400 transactions, 40% deposit transaction and for deposit transaction, total slips required is one.

So slip required =3*400*0.40*1 = 480 thus a total of 480 slips will be needed and as the slips are received every next day and there is an inventory of 50 slips, thus

Order quantity =2 days worth of slips – hand on slips in the bank = 2*480 – 50 = 960 –50 =910

Therefore 910 slips will be required.

4. What is the end-item and component part in this bank example?

The end item can be seen as the customer transaction at the workstation of bank teller. Three different forms i.e. deposit, withdraw, and transfer slips constitute the component parts.

5. What are the implications of having too many or too few deposits, withdrawal, and transfer slips? Explain.

The unnecessary inventory carrying cost could be resulted from the excessive deposit slips per bank branch at the every teller workstation. This also increases the risk of obsolesce if there are some changes to be made in the slips. On the other hand, if too fewer slips are used then it will hinder the operations at the bank branch. This can result in dissatisfaction of the customers and they can transfer their funds to other bank.