Managing variability, Other Management

Assignment Help:

McM Cog is a supplier of industrial parts.  Most orders are received at a call center. The call center currently has 10 phone lines total, i.e., a maximum of 10 callers may be in the call center system at any time.  On average, calls arrive at a rate of three per minute. Each customer service representative (CSR) averages 2.5 minutes per customer call.  Mc Cog estimates there is a cost of two dollars per customer for each minute spent waiting by a caller.  Assume that callers getting a busy signal take their business elsewhere resulting in a loss to McM of $155 per lost call.  CSRs are paid $15 per hour, and it costs McM Cog $4 per hour per line.

a. What is the total hourly cost of the call center and associated activities at McM Cog with the minimum number of CSRs?

b. What is the total hourly cost to McM Cog if they decide to hire another CSR?  What is the total hourly cost to McM Cog if they decide to add another line?  Note:  Perform each of these two system adjustments separately based off the answer to part a.  Of the three options investigated so far, which is best?

c. Given the freedom (and cost) of adding or removing additional telephone lines and CSRs what the best recommendation for McM Cog management in terms of total hourly cost?  Justify your answer


Related Discussions:- Managing variability

Elaborate the different types of benchmarking, QUESTION (a) Explain, us...

QUESTION (a) Explain, using examples, the Prevention, Appraisal and Failure (PAF) model for measuring quality costs and briefly assess its potential for use in a service organi

Describe the levels of consumer decision making while buying, Question 1 E...

Question 1 Explain the components of learning and also classical conditioning theory in brief Question 2 Briefly discuss the decision-making models(any three) Quest

Magic bullet theory, Problem 1 Explain how the magic bullet theory two...

Problem 1 Explain how the magic bullet theory two step flow theory and uses and gratifications theory differ in explaining how the mass media influence their audience. Pro

Has fca be efficient in addressing privatization questions, Q. Has FCA be e...

Q. Has FCA be efficient in addressing privatization questions? Ans. Yes. Greensboro, North Carolina, faced this issue, and FCA was instrumental in trade with it. When the

Can fca facilitate make recycling programs profitable, Q. Can FCA facilitat...

Q. Can FCA facilitate make recycling programs profitable? Ans. No. Waste will carry on to be generated by the residential and commercial sectors, communities will continue

Define performance management system, Question 1: List the several comp...

Question 1: List the several components of a performance management system. Define performance management system Components of performance management system

Drawbacks of centralised cataloguing, Drawbacks   Pooling up the nec...

Drawbacks   Pooling up the necessary funds to opt for centralized cataloguing may be difficult for some libraries.  Because of local variations it may be difficult to go

Define a marine protected area, Question: (i) Define a Marine Protecte...

Question: (i) Define a Marine Protected Area; what are the types of Marine Protected Areas that exist in the Republic of Mauritius, naming one example of each (ii). What i

Scope of materials handling, Scope of Materials Handling Materials han...

Scope of Materials Handling Materials handling is spread over to many different industries and fields of engineering. The followings table gives its broad application.

Modes of formation of subjects, In order to give unique co-extensive repres...

In order to give unique co-extensive representation to each subject in the UoS, the classificationist has to ascertain the various attributes - infinite, turbulently dynamic, conti

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd