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Your firm sells to wholesalers nationwide. Your bank has just completed a lockbox study of your cash collection system. After a thorough study of your

Your firm sells to wholesalers nationwide. Your bank has just completed a lockbox study of your cash collection system. After a thorough study of your remittance information, they categorized your customers into four groups as shown below. Your opportunity rate is 11 percent.

AVERAGE MONTLY REMITTANCES DAYS OF FLOAT

CUSTOME GROUP NUMBER FACE VALUE BANK A BANK B BANK C
1 2,000 $50,000 5 3 1
2 4,000 30,000 1 6 4
3 1,000 18,000 3 7 5
4 200 20,000 7 1 3
Varable processing costs $.30 $.60 $.80
Fixed costs $300 $400 $150

Using the complete enumaration model,determine the optical number of lockbox sites and the customer allocation among the chosen sites.

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