Managing variability, Other Management

Assignment Help:

McM Cog is a supplier of industrial parts.  Most orders are received at a call center. The call center currently has 10 phone lines total, i.e., a maximum of 10 callers may be in the call center system at any time.  On average, calls arrive at a rate of three per minute. Each customer service representative (CSR) averages 2.5 minutes per customer call.  Mc Cog estimates there is a cost of two dollars per customer for each minute spent waiting by a caller.  Assume that callers getting a busy signal take their business elsewhere resulting in a loss to McM of $155 per lost call.  CSRs are paid $15 per hour, and it costs McM Cog $4 per hour per line.

a. What is the total hourly cost of the call center and associated activities at McM Cog with the minimum number of CSRs?

b. What is the total hourly cost to McM Cog if they decide to hire another CSR?  What is the total hourly cost to McM Cog if they decide to add another line?  Note:  Perform each of these two system adjustments separately based off the answer to part a.  Of the three options investigated so far, which is best?

c. Given the freedom (and cost) of adding or removing additional telephone lines and CSRs what the best recommendation for McM Cog management in terms of total hourly cost?  Justify your answer


Related Discussions:- Managing variability

Show crisis management from a pr perspective, Question 1: Management ne...

Question 1: Management needs help when confronted by sudden crisis. It is required that crises be managed intelligently and forthrightly with the news media, Employees and the

Simplest transporting devices, The simplest transporting devices are wh...

The simplest transporting devices are wheel barrows and hand trucks. These are still in use in number of small industries all over the country. Figure (a) shows a ha

Housing start, Housing Star t This is the beginning of the cons...

Housing Star t This is the beginning of the construction of a new housing unit. Housing starts are used as an indicator of economic development, since if there is raisi

Horizontal and vertical integration strategies, QUESTION 1 (a) Comment ...

QUESTION 1 (a) Comment on the generic competitive strategies as proposed by Porter with the use of suitable examples (b) Briefly elaborate, with relevant examples, your unde

Discuss the role of nabard in rural housing development, Question 1 Develo...

Question 1 Development Banks or Development Financial Institutions (DFIs) in India were established mainly to provide long term capital for industry and trade. Write a detailed no

How an offer differ from an invitation to treat, Your Responsible Officer h...

Your Responsible Officer has heard that materials will often be bought more cheaply at auction or tender than from wholesalers. He has also heard much about invitation to treat and

Objectives of inflibnet, Objectives of INFLIBNET The main objectives I...

Objectives of INFLIBNET The main objectives INFLIENET are as under:  To evolve a national network of libraries and information centres in the country and to improve info

Liquidated damages, The General Condition of Contract provides clauses to e...

The General Condition of Contract provides clauses to establish the rights and liabilities of the Purchaser and the Supplier in connection with the execution of a procurement contr

Quality planning, Q uality planning Quality planning helps to schedule...

Q uality planning Quality planning helps to schedule all the tasks required to ensure that the project meets the customer needs. Quality plan is necessary to give the customer

History of mergers and acquisition, History of Mergers and Acquisition ...

History of Mergers and Acquisition In the previous section, we had an overview of merger and acquisition. In this section we will cover its history. The understanding of the hi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd