HW 2 - Tina Phung January 31, 2008 BUAD 311; MW 2-3:50 pm...

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Tina Phung January 31, 2008 BUAD 311; MW 2-3:50 pm Homework 2: Capacity Management 1. a. If the company did not hire new employees to replace those that left, we can expect the employee rates to be zero after 8 months. Therefore, an agent at this call center can be expected to work for an average of 8 months . b. The number of employees at any time in the company is a constant (1000). If 125 employees leave and join the company every month, each employee is calculated to stay for 8 months. This can be written as: 125 employees/ month x 8 month = 1000 employees. If the company is seeking to increase average work time to 20 months, we can calculate the number of employees leaving and joining the company by replacing the new statistics in the above equation. (Z employees/month) x 20 months = 1000 employees. Solving for Z, we see that the number of employees leaving/joining the company per month has reduced to 50. Therefore, by reducing the number of new employees per month to 50, we can reduce hiring and training costs by $187,500 each month
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HW 2 - Tina Phung January 31, 2008 BUAD 311; MW 2-3:50 pm...

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