Q10. Westgate in the problem 9, has decided to hire service representatives to implement a proactive...
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Q10. Westgate in the problem 9, has decided to hire service representatives to implement a proactive service call strategy to address service issues using the following approach. Customers were divided into 4 groups based on their contribution to the company's profit. Large customers who accounted for 40% of the profit were grouped as Class A customers. Given the importance of these customers, service representatives call on Class A customers 20 times a year. These service representatives meet with multiple groups within the firm and spend about 1.5 hours for each call. The next group of large customers were grouped as Class B customers and were visited once every month with each call lasting about 45 minutes. The next two groups accounted for 35% of the profits. Service reps make a regular call every 2 months to Class C customers and spend about 20 minutes each. Class D customers are visited once every three months for 20 minutes call. Table 1 below provides you the call frequency for customer groups. Class of Customer b. Table 1 Number of % Profit Provided by the Customers Customer Segment 40% 25% 20% 15% 100% No of Calls per Year per Customer 20 12 6 4 Call Duration Minutes/Call A 70 B 300 C 800 D 1830 3000 Total At Westgate, employees work 40 hours per week and have 4 weeks of vacation time per year. Workload research shows that sales and service employees spend about 23.7% of their time in traveling, 16.3% in report writing and administrative tasks, 15% of the time in in departmental meetings, and the remaining 45% in face-to-face service calls. a. Determine the number of service representatives Westgate needs to hire using the workload approach. Service representatives are paid a salary of $ 65,000 per year. Firms incur an additional 40% of the salary in benefits. Determine the new break-even sales in units and $. 90 45 20 20 Q10. Westgate in the problem 9, has decided to hire service representatives to implement a proactive service call strategy to address service issues using the following approach. Customers were divided into 4 groups based on their contribution to the company's profit. Large customers who accounted for 40% of the profit were grouped as Class A customers. Given the importance of these customers, service representatives call on Class A customers 20 times a year. These service representatives meet with multiple groups within the firm and spend about 1.5 hours for each call. The next group of large customers were grouped as Class B customers and were visited once every month with each call lasting about 45 minutes. The next two groups accounted for 35% of the profits. Service reps make a regular call every 2 months to Class C customers and spend about 20 minutes each. Class D customers are visited once every three months for 20 minutes call. Table 1 below provides you the call frequency for customer groups. Class of Customer b. Table 1 Number of % Profit Provided by the Customers Customer Segment 40% 25% 20% 15% 100% No of Calls per Year per Customer 20 12 6 4 Call Duration Minutes/Call A 70 B 300 C 800 D 1830 3000 Total At Westgate, employees work 40 hours per week and have 4 weeks of vacation time per year. Workload research shows that sales and service employees spend about 23.7% of their time in traveling, 16.3% in report writing and administrative tasks, 15% of the time in in departmental meetings, and the remaining 45% in face-to-face service calls. a. Determine the number of service representatives Westgate needs to hire using the workload approach. Service representatives are paid a salary of $ 65,000 per year. Firms incur an additional 40% of the salary in benefits. Determine the new break-even sales in units and $. 90 45 20 20
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a To determine the number of service representatives Westgate needs to hire using the workload approach we need to calculate the total time spent on f... View the full answer
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
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