Question

McKinley, a large consulting firm in the UK, has a consulting staff consisting of 400 consultants at the rank of "associate." On average, a consultant remains at the associate level for 2 years. After this time, 30% of the consultants are promoted to the rank of "engagement manager"; the other 70% have to leave the company. In order to maintain the consulting staff at an average level of 400 associates, how many new consultants does McKinley have to hire each year at the associate level?

a.300
b.200
c.400
d.100

Answer 1

Answer:

The correct option is B,200 new consultants must be hired each year

Explanation:

Applying inventory formula that established relationship with  flow rate and flow time,the number of new recruits each year can be determined.

The formula states that : inventory (I)=flow rate(R)*flow time(T)

Inventory is quantity of flow units been managed by an organization at a particular point in time,in the case it is 400 employees.

In addition,flow rate is the quantity of flow units making its  way around the business at a particular time,that is unknown and expected to be determined.

Lastly,flow time  defines the time used by a flow unit in the business process given as two years in this scenario.

As a result,400=R*2years

R=400/2 years

R=200 employees