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please explain your answer. I am stuck. V.V. Ranger is a seller of industrial pr

ID: 438029 • Letter: P

Question

please explain your answer. I am stuck.

V.V. Ranger is a seller of industrial products. All purchases by customers are made through call centers where Ranger representatives take orders. Currently, Ranger has over 350 warehouses in the United States, each with its own call center. Customers call one of the call centers and wait on hold until a representative at that call center becomes available. Ranger is evaluating a switching system where customers will call one 800 number from where they will be routed to the first available representative in any of the call centers. If Ranger installs the switching system, will the average waiting time of customers increase, decrease, or remain the same?

Explanation / Answer

The avarage waiting time will decrease as the custimer will have 1/800 probability of being on waiting instead of 1/350 as in case of first system.