A wealth management company is able to process 300 customer statements per day. The average processing time per statement is two days. What is the average number of statements the company has in process at any time
A) 150
B) 200
C) 450
D) 600

Question

Quizplus · Accepted Answer

The average number of statements in process at any time can be calculated using Little's Law, which states that the average number of items in a queuing system (L) is equal to the average arrival rate (λ) multiplied by the average time an item spends in the system (W). Here, λ = 300 statements per day and W = 2 days. Therefore, L = λ * W = 300 * 2 = 600 statements.

A Wealth Management Company Is Able to Process 300 Customer