Question
Please show step by step working for the answers. Thank you Ashley's Department Store in Kansas City maintains a successful catalog sales department in which
Please show step by step working for the answers. Thank you
Ashley's Department Store in Kansas City maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occu-pied on one line, incoming phone calls to the catalog department are answered automatically by a record-ing machine and asked to wait. As soon as the clerk is free, the party that has waited the longest is trans-ferred and answered first. Calls come in at a rate of about 12 per hour. The clerk is capable of taking an order in an average of 4 minutes. Calls tend to fol-low a Poisson distribution, and service times tend to be exponential. The clerk is paid $10 per hour, but because of lost goodwill and sales, Ashley's loses about $50 per hour of customer time spent waiting for the clerk to take an order. (a) What is the average time that catalog customers must wait before their calls are transferred to the order clerk? (b) What is the average number of callers waiting to place an order? (c) Ashley's is considering adding a second clerk to take calls. The store would pay that person the same $10 per hour. Should it hire another clerk? Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started