Question Master Karr is a supplier of industrial parts. All orders are received at a call center. The call center has 15 phone lines, so that a maximum of 15 callers may be in the system at a time. Calls arrive at an average of 4 call per minute. The call center currently has 5 customer service representatives (CSR). Each CSR averages 1 minute a customer. Master Karr estimates that waiting costs incurred are $1 per customer per minute in terms of phone charges and loss of future business. Also assume that callers who get a busy signal take their business elsewhere, resulting in a loss to Master Karr of once they enter the system. CSRs are paid $15 per hour. a. What is the current hourly cost? b.What is the hourly cost to Master Karr if they decide to hire another CSR? I need a step by step on how to get the answers to A and B.
Question
Master Karr is a supplier of industrial parts. All orders are received at a call center. The call center has 15
phone lines, so that a maximum of 15 callers may be in the system at a time. Calls arrive at an average of 4 call per minute. The call center currently has 5 customer service representatives (CSR). Each CSR averages 1 minute a customer. Master Karr estimates that waiting costs incurred are $1 per customer per minute in terms of phone charges and loss of future business. Also assume that callers who get a busy signal take their business elsewhere, resulting in a loss to Master Karr of once they enter the system. CSRs are paid $15 per hour. a. What is the current hourly cost? b.What is the hourly cost to Master Karr if they decide to hire another CSR?
I need a step by step on how to get the answers to A and B.
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