Homework SourseA small mail order firm Seas Beginnings has one phone line A
A small mail order firm Seas Beginnings has one phone
line. An average of 60 people per hour call in orders, and it
takes an average of 1 minute to handle a call. Time between calls and time to handle calls are exponentially distributed.If the phone line is busy, Seas Beginnings can put up toc -1 people on hold. If c -1 people are on hold, a callergets a busy signal and calls a competitor (Air End). Seas Beginnings wants only 1% of all callers to get a busy signal.How many people should the company be able to put on hold?
A small mail order firm Seas Beginnings has one phone
line. An average of 60 people per hour call in orders, and it
takes an average of 1 minute to handle a call. Time between calls and time to handle calls are exponentially distributed.If the phone line is busy, Seas Beginnings can put up toc -1 people on hold. If c -1 people are on hold, a callergets a busy signal and calls a competitor (Air End). Seas Beginnings wants only 1% of all callers to get a busy signal.How many people should the company be able to put on hold?
A small mail order firm Seas Beginnings has one phone
line. An average of 60 people per hour call in orders, and it
takes an average of 1 minute to handle a call. Time between calls and time to handle calls are exponentially distributed.If the phone line is busy, Seas Beginnings can put up toc -1 people on hold. If c -1 people are on hold, a callergets a busy signal and calls a competitor (Air End). Seas Beginnings wants only 1% of all callers to get a busy signal.How many people should the company be able to put on hold?
Solution
There is only one phone line.
Average no of people calling = 60 in one hour.
!% of all callers at most can get busy signal
i.e. prob <=0.6
Prob for less than 1 person on hold = 0.2642
No of persons = 0.2642(60)
= 15.852
Or 16 persons in hour the company is able to put on hold.
