Question
DataCom Inc. is one of the leading producers of telecommunication products located in the Pacific Northwest. It has more than 1,000 sales representatives in North
DataCom Inc. is one of the leading producers of telecommunication products located in the Pacific Northwest. It has more than 1,000 sales representatives in North America. They call orders into the central office where office workers using the central inventory control system confirm product availability, price, and delivery date.
The representatives call directly from the customer's office before signing a contract. Calls are held in a queue and served by the first available office worker on a first-come, first-served basis. Calls arrive at a rate of 55 per hr (Poisson distribution) and the average time to complete the phone order is six minutes (exponential distribution).
Management estimates that it costs $60 per hour to have a sales representative wait before being helped by an office worker (including the cost of having the end customers wait) and $15 per hour to employ an office worker. Determine the total expected cost per hour (representative wait costs plus office worker costs) if eight office workers are employed.
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