HW2 - BUAD 311 Homework 2: Capacity Analysis Due: 2/5/08 1....

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BUAD 311 Homework 2: Capacity Analysis Due: 2/5/08 1. A call center employs 1000 agents. Each month, 125 agents leave the company and 125 new agents are hired. a. (10 points) How long, on average, does an agent work for this call center? TT=WIP[1000]/TR[125]= 8months The cost of hiring and training a new agent is $2,500. The manager of this call center believes that increasing each agent’s salary would keep them working longer in the company. The manager wants to increase the average employment time of an agent to 20 months. b. (10 points) If, on average, an agent were to stay employed for 20 months, by how much would the hiring and training costs decrease? TR=WIP[1000]/TT[20months]=50 agents per month $2,500(125-50)=decrease by $187,500 per month 2. The Los Angeles branch of Hit & Come Insurance Co. processes 30,000 claims a year. The average processing and waiting time is 3 weeks. Assume there are 50 work-weeks per year. a. (10 points) What is the average number of claims in-process (waiting to be processed or currently being processed)? TT: 3 weeks = .06 years TR: 30,000 claims per year WIP: .06*30,00 = 1,800 claims b. (10 points) Hit & Come Insurance Co. expect a 20% increase in the
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This note was uploaded on 05/01/2008 for the course BUAD 311 taught by Professor Vaitsos during the Spring '07 term at USC.

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HW2 - BUAD 311 Homework 2: Capacity Analysis Due: 2/5/08 1....

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