Waiting Line Models

The catalog Company is a mail-and yell-order association that sells generic brands of house-wargon items and clothing. roughly 95% of customer orders are received by peal; the remaining 5% are received in the mail. tele reverberate set orders are accepted at Catalog Companys toll-free 800 number, The number is available 9 hours per day ( 8 A.M. to 5 P.M.), 5 days a week.
Currently, Catalog employs a single full-time operator to take orders over the phone. Sarah, who is company director, wonders whether additional operators should be hired to take phone orders. Ben, who is CEO, feels that Sarahs time might be better spent analyse the catalog mailing lists. Ben reasons that the mailing lists are where customers are generated, and better the list will bring in more revenue. And besides, Ben says, Catalogs phone operator, Betty Wrangle, seems to be doing zero point more than one-half of the time that I walk by. Hiring more operators to do nothing will just waste more money. Although Sarah knows the mailing lists are important, she thinks that a study of the mailing lists will take furthermost more time than a quick evaluation of the phone order system.
Forging ahead, Sarah discovers the following information about the phone order system. The phone operator, Betty Wrangle, is paid $20 per hour in wages and benefits.



The average cost to Catalog for a stainless 800 number call is $ 1.00. With one phone line, any influent calls that arrive when Betty is on the phone to another customer outfox a busy signal. The cost of the phone line is $50 per month per line. Catalogs phone system is such(prenominal) that it cannot be upgraded in the near future to allow entrance calls to be placed on hold. The average profit on an order (not including the cost of the operator or phone call) is 30% of the amount of the order. For example, an order of $100 brings a profit of $30 to Catalog.
Sarah decided that additional information needed to be poised about the frequency of incoming calls, the...If you want to get a full essay, order it on our website: Orderessay



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