Microdata Software, Inc., uses a telephone ordering system for its computer software productions. Callers place orders with Microdata by using the companys 800 telephone number. Assume that calls to this telephone number arrive at a rate of 15 calls per hour. The time required to process a telephone order varies considerably from order to order. However. Each Microdata sales representative can be expected to handle 4 calls per hour. Currently, the Microdata 800 telephone number has three internal lines, each operated by a separate sales representative. Calls received on the 800 number are automatically transferred to an open line if available.

Whenever all three lines are busy, callers receive a busy signal. In the past, Microdata management assumed that callers receiving a busy signal would call back later. However, recent research showed that a substantial number of callers who are denied access do not call back later. These lost calls represent lost revenues for the firm, so Microdatas management requested an analysis of the telephone ordering system.

If managements goal is to provide sufficient capacity to handle 95% of the callers, how many telephone lines and sales representatives should Microdata use? (Show all your work)