Calculating lock-up days (calculation needs to consider weighted average)

[Stewart1978]

Back ground:

We are developing a system in which an automated calculation has to be implemented for calculating the lock-up days (WIP and A/R lock-up) for each engagement.

Lock-up days = Number of days between charging an (hour * rate) to the engagement until the money is received on the bank account.

Lock-up days consist of two sub-lock-up days being: WIP lock-up days + A/R lock-up days

WIP lock-up: Number of days between charging an hour to the code until the hours have been billed (WIP = Work In Progress = hours * rate)

A/R lock-up: Number of days between billing and receiving the money on the bank account

Note: Lock-up can be negative if you bill in advance.

The calculation needs to consider weighted average

I have attached two example for calculating the lock-up for WIP. One straightforward and one with multiple transactions.

Once I know the formula to apply I can also develop that for calculating the lock-up for A/R

Your help is greatly appreciated.




Regards

 

[stapel]

Back ground:

We are developing a system in which an automated calculation has to be implemented for calculating the lock-up days (WIP and A/R lock-up) for each engagement.

Lock-up days = Number of days between charging an (hour * rate) to the engagement until the money is received on the bank account.

Lock-up days consist of two sub-lock-up days being: WIP lock-up days + A/R lock-up days

WIP lock-up: Number of days between charging an hour to the code until the hours have been billed (WIP = Work In Progress = hours * rate)

A/R lock-up: Number of days between billing and receiving the money on the bank account

Note: Lock-up can be negative if you bill in advance.

The calculation needs to consider weighted average

Please reply with the full and exact text of the exercise, the complete instructions, and a clear listing of your thoughts and efforts so far. When you reply, please specify the topic in your calculus class that gave rise to this exercise, as this will be very helpful in figuring out how your instructor probably expects you to proceed. Thank you!