Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

A manager of a medium-sized call center needs to determine the optimal number of operators that she should hire. The call center serves two types of clients: Business (B) and Leisure (L) customers. She has determined that B calls arrive according to a Poisson process at a rate of 18 calls per hour. On the other hand, L calls arrive according to a Poisson process at a rate of 50 calls per hour. She decides to hire highly skilled operators who can serve both type of customers and the average amount of time that they need is 9 minutes per call independent of the type (service times are exponentially distributed). The cost of hiring an H operator is $35 per hour. The manager has also estimated that the cost of keeping a B customer waiting in queue is $80 per customer per hour while the cost of keeping an L customer waiting in queue is $20 per customer per hour. The manager is considering having a single queue for both types of calls and hire only H operators that will serve both types of calls. Calls will be served on a First-Come-First-Serve basis independent of their type.

Find: 1. Minimum feasible number of operators

2. Average number of B and L customers in the queue if the call center is staffed by 12 operators

3. Total cost incurred by the call center per hour of operating if it is staffed by 12 operators

4. Nopt: the optimal number of operators that minimizes the cost incurred by the call center, and the corresponding cost, Wq, and utilization. Please show all your work. Be sure to include the formula for the wait cost computation.

Please show all your work. Be sure to include the formula for the wait cost computation.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93093868

Have any Question?


Related Questions in Operation Management

Use a personal example or a text example or a business

Use a personal example or a text example or a business problem from the real world to illustrate one or more of the Decision Analysis models covered. Why was the particular model chosen? Which model(s) might provide a be ...

Organisations that intend to be successful need to design

Organisations that intend to be successful need to design products, services and product/ service bundles to meet customer needs. How can they do this and how can they ensure that the organisation’s plans achieve quality ...

1 what is the relationship between the three types of

1. What is the relationship between the three types of external controls and the three layers of cultural analysis? How does it apply to Blackberry? Provide specific examples.  2. We have all heard the cliche' "cash is k ...

Many companies spend significant dollars on research and

Many companies spend significant dollars on Research and Development (R&D) to develop new patents, products, service lines or copyrights. For example, Apple spent over $10 billion on R&D during the year ended 9/24/16. Ac ...

Michigan state figurine inc msf sells crystal figurines to

Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $32 per unit. They send orders electronically to the manufacturer, costing $57 per order and they ...

Scenario a current board member and large donor has a son

Scenario: A current Board member and large donor has a son who has just graduated from college and is having difficulty finding a job. He asked the CEO to assist his son in securing a job at your facility. Meanwhile this ...

What is the benefit of using dummy sources and dummy

What is the benefit of using dummy sources and dummy destinations in Transportation models? If we have excess inventory (i.e. total supply is greater than total demand) this a management problem, just as total demand bei ...

Directions you are a crm consultant hired by lacks

DIRECTIONS: You are a CRM consultant hired by LACK'S furniture Inc. Although they are successful, they lack a CRM system to integrate there individual departments and stores. Five Satges: 1. Develop the CRM strategy 2. B ...

A las vegas nevada manufacturer has the option to make or

A Las Vegas, Nevada, manufacturer has the option to make or buy one of its components parts. The annual requirement is 10,000 units. To make the parts in-house,the firm must invest $30,000 in capital equipment and estima ...

Consider the following scenarioto assist the sale of your

Consider the following scenario: To assist the sale of your products in a particular foreign market, you are advised to pay a 10 percent commission to a go-between who has access to high-ranking government officials in t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As