Master Karr is a supplier of industrial parts. All orders are received at a call center. The

Question:

Master Karr is a supplier of industrial parts. All orders are received at a call center. The call center has 15 phone lines, so that a maximum of 15 callers may be in the system at a time. Calls arrive at an average of 4 calls per minute. The call center currently has 5 customer service representatives (CSRs). Each CSR averages 1 minute a customer. Master Karr estimates that waiting costs incurred are $ 1 per customer per minute in terms of phone charges and loss of future business. Also assume that callers who get a busy signal take their business elsewhere, resulting in a loss to Master Karr of $ 50 per lost call. Assume that callers do not abandon once they enter the system. CSRs are paid $ 15 per hour.
a. What is the hourly cost to Master Karr of the cur-rent configuration of the call center?
b. What is the hourly cost to Master Karr if they decide to hire another CSR? Do you recommend this move?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managing Business Process Flows Principles of Operations Management

ISBN: 978-0136036371

3rd edition

Authors: Ravi Anupindi, Sunil Chopra, Sudhakar Deshmukh, Jan Van Mieg

Question Posted: