An Existing Insurance Application Process Requires Manual Keying of Three

question 114

Essay

An existing insurance application process requires manual keying of three different forms by a team of data entry operators.The three forms' input times appear in the following table along with the numbers of each type of form anticipated for the coming year.A proposed refinement in the process would reduce the number of forms but make each slightly longer.This would be combined with a search of public records on the World Wide Web as necessary.These times and quantities appear in the lower half of the table.If the labor rate for the data entry operators is the same,which method is preferable?

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Definitions:

Selective Demand

Demand for a specific brand or product over its competitors, driven by marketing efforts and consumer preferences.

Product Life Cycle

The stages a product goes through from introduction to the market, growth, maturity, and eventual decline.

Skimming Pricing Strategy

A pricing approach where a high initial price is set for a new product to "skim" revenue layers from the market.

Product Life Cycle

The series of stages a product goes through from development and introduction to the market, through growth, maturity, and eventually decline.