You are given that the arrival rate of customers to a small call center is 8 customers per hour. Only one of two different workers with different skill levels can be hired to attend to the customers. The average time to serve a customer is 6 and 5 minutes, respectively; and the hourly cost is $16 and $20, respectively. The hourly waiting time cost is $10 (i.e., if a customer waits in the system for one hour then the cost incurred by the firm is $10).

Determine which worker should be hired for this job in order to minimize the total system cost (service cost + waiting cost). The arrival process is Poisson and the service times are exponentially distributed. Hint: The average waiting time in the system for an M/M/1 queue is given by Ws=1/(), where  is the arrival rate and  is the service rate

Answer rating: 100% (QA)

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