Expected daily penalty once the process

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TASK

You are negotiated with a company to outsource their process to your BPO in PH. You asked for their historical QA audit data and found that 7% of the transactions done contained errors. You also estimate out of the 5000 transactions they have per day, 50% will be transferred to your PH operations in the first year. Your client also inserted a penalty clause of P200 per erroneous transaction.

1. How much is your expected daily penalty once the process has been transferred to your team?

2. What is the probability that you will get a maximum of 50 errors per day?

3. You want to give teams a bonus with a P10k budget per day if they can limit the errors to 20-50 per day, and P15k if they limit it at less than 20 per day. What are the probabilities for each case to happen? Is the bonus reasonable? What other incentives can you recommend to influence the agents?

Reference no: EM133411574

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