Compute the cost rate for the system with servers

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Reference no: EM131437222

Hilton Garden Inn in Atlanta needs to decide whether to have 2 or 3 operators answering calls from customers and hotel guests. The hourly wage of a customer service representative is $30. There are approximately 40 calls per hour arriving according to the Poisson process and each call takes on average 2.5 minutes to answer (exponentially distributed). Calls answered in the order they are received. The wait cost is incurred by all customers in the system (queue and in service). The estimated wait cost rate $50 per hour. Compute the cost rate for the system with 2 and 3 servers and decide whether there should be 2 or 3 operators.

Reference no: EM131437222

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