Maintains successful catalog sales department

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Reference no: EM131732045

?Janson's Department Store in? Stark, Ohio, maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occupied on one? line, incoming phone calls to the catalog department are answered automatically by a recording machine and asked to wait. As soon as the clerk is? free, the party who has waited the longest is transferred and serviced first. Calls come in at a rate of about 11 per hour. The clerk can take an order in an average of 3.0 minutes. Calls tend to follow a Poisson? distribution, and service times tend to be negative exponential.

The cost of the clerk is ?$8 per? hour, but because of lost goodwill and? sales, Janson's loses about ?$27 per hour of customer time spent waiting for the clerk to take an order. ?

a) The average time that catalog customers must wait before their calls are transferred to the order clerk? = X minutes ?(round your response to two decimal? places).

?b) The average number of callers waiting to place an order? = X callers ?(round your response to two decimal? places).

The present total cost per hour? (service cost+waiting ?cost) = ?$X per hour ?(round your response to two decimal? places). ?

c) Janson's is considering adding a second clerk to take calls. The ?store's cost would be the same ?$8 per hour. The total cost? (service cost+waiting ?cost) = ?$X per hour ?(round your response to two decimal? places).

By hiring the second? clerk, the total cost savings per hour for? Janson's=$X per hour ?(round your response to two decimal? places).

Reference no: EM131732045

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