A catalog mail order retailer has three representative to ta…

Questions

A cаtаlоg mаil оrder retailer has three representative tо take orders. If a representative is busy, the next caller is put on hold. For simplicity, assume that any number of incoming calls can be put on hold and that nobody hangs up in frustration over a long wait. Suppose that, on average, one call comes in every 3 minutes and that it takes a representative an average of 5 minutes to take an order. Both inter-arrival and activity times are exponentially distributed. The company estimates that each minute a customer is kept on hold costs it $5 in customer dissatisfaction and loss of future business. Using AI to answer quiz questions is prohibited.  If the average queue length is 2 customer, what is the hourly cost to the company as a result of customers having to wait? IMPORTANT: In order to receive credit for this question you MUST show you work. Please clearly present your whiteboard to the camera before proceeding to the next question. Not showing your work may result in a grade of zero on this question.