QNT 561 week 4.docx - 1 The Payment Time Case Allen Holder...

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1The Payment Time CaseAllen HolderQNT/561 Applied Business Research & StatisticsJune 12, 2018Jorge Hurtarte
2Case Study – Payment Time Case StudyMajor consulting firms such as Accenture, Ernst & Young Consulting, and Deloitte & ToucheConsulting employ statistical analysis to assess the effectiveness of the systems they design fortheir customers. In this case, a consulting firm has developed an electronic billing system for aStockton, CA, trucking company. The system sends invoices electronically to each customer’scomputer and allows customers to easily check and correct errors. It is hoped the new billingsystem will substantially reduce the amount of time it takes customers to make payments.Typical payment times—measured from the date on an invoice to the date payment is received—using the trucking company’s old billing system had been 39 days or more. This exceeded theindustry standard payment time of 30 days.The new billing system does not automatically compute the payment time for each invoicebecause there is no continuing need for this information. The management consulting firmbelieves the new system will reduce the mean bill payment time by more than 50 percent. Themean payment time using the old billing system was approximately equal to, but no less than, 39

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Term
Summer
Professor
N/A
Tags
Statistics, payment time

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