Question
You are running a small call center. Customer calls arrive as a Poisson process of rate 2 calls/hour. Time unit is 1 hour. Now you
You are running a small call center. Customer calls arrive as a Poisson process of rate 2 calls/hour. Time unit is 1 hour. Now you have to decide whether to employ 1 or 2 agents answering the calls. A call processing time by an agent has exponential distribution with parameter 2, which means the mean of call processing time is 0.5 hours. Call processing times are independent. Employing one agent costs $25/hour. If a customer call arrives when there is 1 agent to take it, the call is considered processed and your call center receives $40 revenue. If a call arrives when there is no available agent, the call is considered lost. Which is more profitable for your call center in terms of long-term average profit, to employ 1 agent or 2 agents?
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