April 1999
QT211: QUANTITATIVE ANALYSIS FOR MANAGEMENT

QUESTION 5

Total Marks: 20 Marks

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GRADE A
Sample student's solutions are indicated in green.
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Irwin Transport Company is setting up an office to handle phone reservations. During the busy period it is expected that phone calls will come in at a rate of 1 every 4 minutes. From past experience management knows that, on the average, it takes about 3 minutes to process a call. When a customer calls in and all the agents are busy, the caller listens to music until an agent is free.

 

[2]
(a) Assume Irwin Transport Company will staff the office with one reservation agent.
(i) What percentage of the time will customer calls be answered immediately? [3]
mean arrival rate, l  = 60/4 = 15 calls/hr
mean service rate,
m   = 60/3 = 20 calls/hr

P = l  /  m
   = 15/ 20 = 0.75

Percentage of time calls will be answered immediately
= ( 1-P) Pn
= (1- 0.75) 0.750
= 0.25

 

(ii) How long will the average customer need to wait before an agent comes on the line? [2]
mean waiting time in queue
=
l / [m (m - l)]
=15 / [20(20-15)]
= 0.15 hrs
» 9 mins

 

(iii) What is the call intensity? [1]
Call intensity is 0.75.

 

(iv) At any given time, how many customers will be in the system? [2]
mean number of customers in the system
= P / 1-P
= 0.75 / (1-0.75)
= 3 customers

                

(b) If Irwin Transport Company adds a second reservation agent then calculate the following:
(i) What percentage of the time will a customers call be answered immediately? [5]
P = l   / cm
   = 15/ 2(20)
   = 0.375

Percentage calls will be answered immediately
= [1 + (0.375(2))1 / 1! + (0.375(2))2 / 2!(1- 0.375) ] -1
= [1 + 0.75 + 0.45] -1
= 0.4545
» 45.45 %

 

(ii) How long will the average customer need to wait before an agent comes on the line? [4]
mean waiting time in queue
=[ (0.375(2))2 / 2!(1- 0.375)2(2)(20) ]* 0.4545
= 0.5625/31.25 * 0.4545
= 0.008181 hrs
» 0.49 mins

 

(iii) At any given time, how many customers will be waiting? [3]
mean number of customers will be waiting
=[ ( 0.375(0.375 * 2)2 / 2!(1- 0.375)2 ) * 0.4545 + 0.372(2)
= 0.2109/0.781 * 0.4545 + 0.75
= 0.873