Answer:
A. 50
B. 4%
Explanation:
To determine the number of new MBA graduates that Mt. Kinley must recruit annually, we calculate the flow rate of associates by dividing the average number of associates by the flow time for associates.
Requirement A:
Flow rate of associates = Average inventory of associates / Flow time of associates
Flow rate of associates = 200/4
Flow rate of associates = 50
Thus, the company needs to hire 50 new MBAs each year.
Requirement B
The likelihood of an associate advancing to partner is 20% x 20%
This results in a probability of 4% for an associate to become a partner
Therefore, the probability that a new employee at Mt. Kinley will be promoted to partner stands at 4%
Working
The manager flow rate equals the average inventory of managers divided by their flow time
The flow rate of managers = 60/6
The flow rate for managers totals 10 per year
For partners, the flow rate is calculated as the average inventory of partners divided by their flow time
The flow rate of partners = 20/10
This results in 2 partners per year
The probability of an associate becoming a manager is given by 10/50
yielding a probability of 20%
The chances of progressing to partner stands at 2/10
indicating a 20% chance of becoming a partner
