Question: ---- please disregard the numbers in the answer boxes. They are not correct.---- only do parts A-C After graduating from college, your friends and you
---- please disregard the numbers in the answer boxes. They are not correct.---- only do parts A-C
After graduating from college, your friends and you start an Internet auction service called TriangCom. Business has been fantastic, with 10 million customer visits dash or "hits" dash to the site in the past year. You have several capacity decisions to consider. One key decision involves the number of computer servers needed. You are considering putting in 10, 20, or 30 servers. TriangCom generated $7.5 million last year, based on 10 million hits. Put another way, each hit generated, on average, $0.75 in revenue



E Click the icon to view the costs and capacity limits. B Click the icon to view the demand scenarios developed by marketing. a. The break-even point for the capacity of 10 servers is 56690 hits. (Enter your response rounded up to the next whole number.) The break-even point for the capacity of 20 servers is 123,596 hits. (Enter your response rounded up to the next whole number.) The break-even point for the capacity of 30 servers is 201,343 hits. (Enter your response rounded up to the next whole number.) b. The indifference point for having 10 servers and having 20 servers options is 7500000 hits. (Enter your response rounded to the nearest whole number.) c. Calculate the expected value for each capacity alternative. (Hint: Don't forget about capacity constraints that can limit the number of hits each capacity alternative can handle.) Fill in the table below (enter your responses as whole numbers). Option 10 servers 20 servers Expected Value $ 12,323,000 $ 14,185,000 $ 20,025,000 30 servers The option for 30 servers will maximize the expected value. d. TriangCom has hired Donna Olway to code programs. Donna completes her first job in 15 weeks and her second job in 12 weeks. Assume that (1) Donna continues to learn at this rate and (2) her time improvements will follow a learning curve. B Click the icon to view the selected and cumulative n values for different learning curves. Time needed Donna to complete her twentienth job is 5.715 weeks. (Enter your response rounded to three decimal places.) e. Time needed Donna to complete the next seventeen jobs (jobs 3 through 19) is 124.560 weeks. (Enter your response rounded to three decimal places.) f. With thousands of customers, Triang Com has established a hotline to take customer calls. The hotline is staffed by one person 24 hours a day. You have the following statistics: Service rate for calls Arrival rate for calls 28 per hour, on average 18 per hour, on average As part of your customer service policy, you have decided that the average waiting time should not exceed 14.8 minutes. The average number of callers being served is 0.643. (Enter your response rounded to three decimal places.) g. The average number of callers are waiting to be served is 1.157. (Enter your response rounded to three decimal places.) h. The average waiting time for a customer is 3.857 minutes. (Enter your response rounded to three decimal places.) This time is acceptable, given the customer service policy. per Hit Number of Fixed Cost per Variable Cost Servers Year 10 $40,000 $0.009 $115,000 $0.005 30 $155,000 $0.003 Maximum Hits per Year 15 million 35 million 40 million 20 i More Info x Yearly Demand 20 million hits 50 million hits 75 million hits Probability 45% 50% 5%