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Case Study Alabama Airlines Alabama Airlines opened its doors in June 1995 as a commuter All customers calling Alabama Air go on hold and are service with its headquarters and only hub located in Birming served in the order of the calls unless the reservations agent is ham. A product of airline deregulation. Alabama Air joined the growing number of successful short-haul. point-to-point air- lines, including Lone Star. Comair. Atlantic Southeast, Sky- TABLE 14.15 Incoming Call Distribution west. and Business Express. Alabama Air was started and managed by two former pi- lots, David Douglas (who had been with the defunct Eastern TIME BETWEEN CALLS IMINUTES) PROBABILITY Airlines) and Savas Ozatalay (formerly with Pan Am). It ac- quired a fleet of 12 used prop-jet planes and the airport gates va- 0.1I cated by the 1994 downsizing of Delta Air Lines N. 0.21 With business growing quickly. Douglas turned his attention 0.22 to Alabama Air's toll-free reservations system. Between midnight 0.20 and 6:00 A.M., only one telephone reservations agent had been on duty. The time between incoming calls during this period is dis- 0.16 tributed as shown in Table 14.15. Douglas carefully observed and 0.10 timed the agent and estimated that the time taken to process pas- senger inquiries is distributed as shown in Table 14.16. CASE STUDY 571 TABLE 14.16 Service Time Distribution TABLE 14.17 Incoming Call Distribution TIME TO PROCESS CUSTOMER TIME BETWEEN INQUIRIES (UNUTES) PROBABILITY CALLS (MINUTES) PROBABILITY 0.20 0.22 0.19 N 0.25 0.18 0.19 0.17 0.15 0.13 0.12 0.10 0.07 0.03 Discussion Questions available for immediate service. Douglas is deciding whether a second agent should be on duty to cope with customer demand. 1. What would you advise Alabama Air to do for the current To maintain customer satisfaction, Alabama Air does not want reservation system based on the original call distribution? a customer on hold for more than 3 to 4 minutes and also wants Create a simulation model to investigate the scenario. to maintain a "high" operator utilization. Describe the model carefully and justify the duration of the Further, the airline is planning a new TV advertising cam- simulation, assumptions, and measures of performance. paign. As a result, it expects an increase in toll-free-line phone 2. What are your recommendations regarding operator uti- inquiries. Based on similar campaigns in the past. the incom- lization and custom if the airline proceeds ing call distribution from midnight to 6 A.M. is expected to be with the advertising campaign? as shown in Table 14.17. (The same service time distribution will apply.) new H. Praas