A call center employs 1161 agents. Every month 43 employees leave the company an
ID: 459569 • Letter: A
Question
A call center employs 1161 agents. Every month 43 employees leave the company and 43 new employees are hired.
a. how long on average does as agent work for this call center
Suppose the cost of hiring and training a new agent is $860. The manager of this call center believes that increading agents salaries would keep them working longer at the company. The manager wants to increase the average time that an agent works for the call center to 36 months, or three years.
b. use the calculated average working time at this call center to determind the current annual cost for hiring and training.
b-2 determine the new annual cost for hiring and training.
b-3 How much can the company save on hiring and training costs over a year
Explanation / Answer
a) Though put rate (TR)=43/month
Work in Progress (WIP)=1161
hence Average work time= Through put time= WIP/TR=1161/43=27
b-1) current annual hiring and training cost:
thorugh put rate=43/month=43*12=516
annual hiring and training cost=860*516=443760
b-2)new Annual cost of hiring and training
average work time=36 months= 3 years
thorugh put rate=WIP/3=1161/3=387 staff/year
annual hiring and training cost=387*860=332820
b-3) savings=443760-332820=110940
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.