Ocala\'s customer service department has received complaints about long waiting
ID: 2746917 • Letter: O
Question
Ocala's customer service department has received complaints about long waiting times, so Ocala is thinking about adding another technical support consultant. The second consultant would serve customers at the same rate as the first consultant and would be paid $28 per hour (the same as the first consultant). Incoming calls would be answered by the same automated system and transferred to the first available consultant. Ocala values customers waiting time at $24 per hour (per customer) to reflect possible loss of future sales.
e. Would the new system be single-channel or multiple channel waiting line system?
f. What is the difference in total hourly cost between a one-consultant and two-consultant system (using the configuration described above)? Should Ocala hire another consultant? Justify your answer by comparing the costs.
Explanation / Answer
e). The new system would be a multi-channel waiting line system, as the system will have two channels to direct customers.
f).
Variable cost per hour with one-consultant = $ 28
Variable cost per hour with one-consultant = $ 28*2 = 56
Difference in total hourly cost = 56 - 28 = $ 28
Ratio of the cost of consultant to the value of customer waiting in line = 28/24 = 1.17
With one-consultant, if the average number of customers waiting in line was more than 1.17 customers per hour, then Ocala should hire the second consultant, as the cost of hiring additional consultant will be offset by the value of customer waiting in line.
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