The MGMT Insurance Ltd. accepts payments on various insurance policies fromemplovees of businesses across the island. These businesses deduct payments fromemployees' salaries and pay the insurance company a lump sum each month. This totalamount deducted is shown on each employee's payslip. Deductions are due at the end of each month and each participating business submits onepavment for its emplovees to the insurance company via online payments through thebank. However, if payments were received after 11:00 a.m., the bank does not processthem until the next business day. At the beginning of each month an administrativeassistant at MGMT Insurance Ltd. downloads the deductions for each company andallocates payments to the various policies. These payments include the client's uniquenumber along with his/her relevant policy numbers and amounts due. However, recently there has been some complaints that payments for some policies werenot being allocated correctly. Additionally, assume that one client experienced a problemwith insufficient deductions to cover his/her monthly premiums. As the Operational Manager in Human Resource Department with the company, you wish to check the systems and processes to ensure that they are up-to-date and report your findings and possible recommendations atthe upcoming meeting. Discuss the allocation issue: From the perspective of an Operational Manager in Claims department , discuss the problem oferrors in the allocation of deductions to policy premiums. a. Suggest ONE advantage of having an insurance policy and ONE contributingfactor to errors in allocation of deductions b. Identify information from TWO other departments that could assist in yourinvestigation. Please specify the type of report you think will be helpful and why

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section6.5: Set-covering And Location-assignment Models

Problem 34P

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The MGMT Insurance Ltd. accepts payments on various insurance policies fromemplovees of businesses across the island. These businesses deduct payments fromemployees' salaries and pay the insurance company a lump sum each month. This totalamount deducted is shown on each employee's payslip. Deductions are due at the end of each month and each participating business submits onepavment for its emplovees to the insurance company via online payments through thebank. However, if payments were received after 11:00 a.m., the bank does not processthem until the next business day. At the beginning of each month an administrativeassistant at MGMT Insurance Ltd. downloads the deductions for each company andallocates payments to the various policies. These payments include the client's uniquenumber along with his/her relevant policy numbers and amounts due. However, recently there has been some complaints that payments for some policies werenot being allocated correctly. Additionally, assume that one client experienced a problemwith insufficient deductions to cover his/her monthly premiums. As the Operational Manager in Human Resource Department with the company, you wish to check the systems and processes to ensure that they are up-to-date and report your findings and possible recommendations atthe upcoming meeting. Discuss the allocation issue: From the perspective of an Operational Manager in Claims department , discuss the problem oferrors in the allocation of deductions to policy premiums. a. Suggest ONE advantage of having an insurance policy and ONE contributingfactor to errors in allocation of deductions b. Identify information from TWO other departments that could assist in yourinvestigation. Please specify the type of report you think will be helpful and why

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