Currently, it requires two days to process the checks received in the mail from your customers. The average mail time is 2.7 days and the check clearing time is .97 days. If you adopt a lockbox system, the mail time will be cut in half. In addition, if employees are reassigned, checks could be processed in one day. How long will your collection time be if both the lockbox system and the job reassignments are implemented?

Question

Quizplus · Accepted Answer

The collection time with both the lockbox system and job reassignments implemented would be 1.35 days for mail (half of 2.7 days), plus 1 day for processing, plus 0.97 days for check clearing, totaling 3.32 days.

Currently, It Requires Two Days to Process the Checks Received