How many people should the company be able to put on hold

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A small mail order firm Seas Beginnings has one phone line. An average of 60 people per hour call in orders, and it takes an average of 1 minute to handle a call. Time between calls and time to handle calls are exponentially distributed. If the phone line is busy, Seas Beginnings can put up to c _ 1 people on hold. If c _ 1 people are on hold, a caller gets a busy signal and calls a competitor (Air End). Seas Beginnings wants only 1% of all callers to get a busy signal. How many people should the company be able to put on hold?

Reference no: EM131441934

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