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The manager of the call center of a large airline company needs to determine the optimal number of operators that she should hire. The call center...
The manager of the call center of a large airline company needs to determine the optimal number of operators that she should hire. The call center serves two types of clients: Business (B) and Leisure (L) customers. She has determined that B calls arrive according to a Poisson process at a rate of 20 calls per hour. On the other hand, L calls arrive according to a Poisson process at a rate of 60 calls per hour.Two types of operators are available on the market: High skill (H) and Average skill (A), which differ in their ability and speed to service the two types of clients. H operators can serve both types of customers and they need on average 10 minutes per call, independently of the type. On the other hand, A operators can serve only L calls and they need on average 15 minutes per call. Assume that all service times are exponentially distributed.The cost of hiring an H operator is $30 per hour while the cost of hiring an A operators is $20 per hour. The manager has also estimated that the cost of keeping a B customer waiting is $50 per customer per hour while the cost of keeping an L customer waiting is $5 per customer per hour.The manager is considering the following configurationsConfiguration 1: Two separate queuesHave two separate queues for each type of calls. For the B calls queue she hires only H operators. For the L calls queue she hires only A operatorsConfiguration 2: Single queueHave a single queue for both type of calls and hire only H operators that will serve both types of calls. Calls will be served on a First-Come-First-Serve base independent of their typea) (10 points) Under configuration 1, what is the optimal (from a cost point of view) number of H operators and A operators that she should hire?b) (8 points) Under configuration 2. what is the optimal (from a cost point of view) number of H operators that she should hire?c) (2 points) Which one of the two configurations do you recommend?Please show all your work and the steps you took to reach the conclusions. Note that you will need to use the Excel M-M-S.xls file to answer this question. You can find the file on Blackboard (at http://sternclasses.nyu.edu) under Course Documents> Waiting Lines.Question 3 (30 points)National Bank is re-engineering its loan application process. The project manager has identified three main activities (sub processes) that need to take place during this process. (1.) Reception of all required documents (2.) Risk evaluation (3.) Final decision.Activity (1) is performed at the branch. Each application is handled by a single employee. This activity takes 1 day. There are two employees in each branch working independently on that activity.Activity (2) is performed at headquarters. Each application is evaluated independently by a single employee. This activity takes 6 days and there are 3 employees working in this department.Finally, Activity (3) takes place at headquarters during a meeting with the VP of credit. This meeting can be scheduled as needed, and will typically take an entire day. By the end of the day, a decision is made on all the applications under review in that meeting. The number of applications reviewed during one meeting can be anywhere between 1 and 10 applications.Assume the bank has 3 branches.a) What is the flow time, the capacity, the cycle time, and the bottleneck of this loan application process? If the bank is receiving applications continuously, what is frequency of the meetings with the VP of credit if the goal is to keep the process Flow time minimal?b) What are the utilization of each process when the bank is working continuously?c) When working continuously, how many loan applications are being processed simultaneously in the bank?d) What can you suggest to improve such process? (assume that all employees of the bank are trained to do all the different activities related to the loan application process). What is the new capacity of the entire process.
