ANSWER 1.

Yes. In the case of Megacard Corporation the BTC’s respond to random arrivals. These arrivals cannot be predicted
there are enough people to man the TC during peak call volumes. The peak call volume and the number of TC’s req

Indianapolis 11
Kansas city 7
Dallas 5

Service rate,µ 6 for half hour

Indianapolis Kansas City Dallas

BTC TCs needed BTC TCs needed BTC TCs needed
0800-0830 19 4 22 4 17 3
0830-0900 45 8 32 6 30 5
0900-0930 42 7 25 5 28 5
0930-1000 58 10 20 4 16 3
1000-1030 58 10 18 3 27 5
1030-1100 50 9 31 6 27 5
1100-1130 63 11 18 3 22 4
1130-1200 42 7 23 4 30 5
1200-1230 31 6 40 7 15 3
1230-0100 24 4 25 5 12 2
0100-0130 30 5 16 3 14 3
0130-0200 60 10 20 4 18 3
0200-0230 44 8 31 6 23 4
0230-0300 49 9 18 3 15 3
0300-0330 29 5 13 3 11 2
0330-0400 45 8 23 4 6 1
0400-0430 26 5 26 5 7 2
0430-0500 17 3 11 2 5 1
0500-0530 15 3 19 4 2 1
0530-0600 2 1 5 1 2 1
Total 749 436 327

TCs required Indianapolis 11 Kansas City 7 Dallas 5

e arrivals cannot be predicted.To provide good , consistent service to the customers we just need to ensure that
e and the number of TC’s required in the three areas have been calculated in the excel attached.
 eed to ensure that
hed.
ANSWER 2

Calls handled quicker (cost saving)

Avg wait time (mins) 1

Avg call time (mins) 5
Avg total time a customer spends on the system 6
Working hour per day (assumed) 8 (10 hours given in Exhibit 1, but taking the br
Capacity of calls per TC per day 80

Indianapolis Kansas City

Total # calls expected per day 749 436
Therefore, number of TCs required 10 6

Assuming that we are able to handle the calls quicker by 2 mins,

Avg total time (mins) 5 5
Required number of TCs to handle the calls 8 5
Therefore, # TC savings 2 1
Avg annual salary of TC $30,000 $30,000
Total salary expense earlier $300,000 $180,000
Salary expense with reduced time $240,000 $150,000
Therefore, savings on salary 20.00% 16.67%

Therefore, per minute reduction in call time can be said to reduce the cost by 15-20% in terms of yearly salary expenses as we
s given in Exhibit 1, but taking the breaks into account)

Dallas
327
5

5
4
1
$30,000
$150,000
$120,000
20.00%

ms of yearly salary expenses as we will be employing lesser number of TCs

ibit 1, but taking the breaks into account)

(1 minute reduction assumed)

salary expenses as we will be employing lesser number of TCs

ANSWER 3

Assumptions and facts

Salary of Travel Counselors $ 30,000
TCs salary as a % of total expenses 51.34%
Minutes per call 7 (2 min hold, 5 minutes for service
Avg sales per call 22.96
Number of working hours 6 (break hour)

1992
Expected Number of No. of TCs Annual TCs
BTC Volume (000s) calls Required salaries

New York $ 31,437 1370 32 $ 960,000

Washington, D.C. $ 26,048 1135 27 $ 810,000
Atlanta $ 9,880 431 11 $ 330,000
Boston $ 5,838 255 6 $ 180,000
Kansas City $ 10,779 470 11 $ 330,000
Indianapolis $ 14,552 634 15 $ 450,000
Denver $ 2,246 98 3 $ 90,000
Boulder, CO $ 2,426 106 3 $ 90,000
Phoenix $ 4,554 199 5 $ 150,000
Dallas $ 8,084 353 9 $ 270,000
Philadelphia $ 19,761 861 21 $ 630,000
Baltimore $ 9,880 431 11 $ 330,000
Stamford, CT $ - 0 0 $ -
Newark $ 3,862 169 4 $ 120,000
Charlotte, NC $ 13,203 576 14 $ 420,000
Albany, NY $ 12,484 544 13 $ 390,000
San Francisco $ 35,928 1565 37 $ 1,110,000
Palo Alto, CA $ 3,234 141 4 $ 120,000
Oakland, CA $ 4,491 196 5 $ 150,000
Los Angeles $ 23,354 1018 24 $ 720,000

Decentralized BTCs $ 242,041 10552 255 $ 7,650,000

Centralized BTC $ 242,041 10552 247 $ 7,410,000

TOTAL SAVINGS
Total Expenses

$ 1,869,887.03
$ 1,577,717.18
$ 642,773.67
$ 350,603.82
$ 642,773.67
$ 876,509.54
$ 175,301.91
$ 175,301.91
$ 292,169.85
$ 525,905.73
$ 1,227,113.36
$ 642,773.67
$ -
$ 233,735.88
$ 818,075.57
$ 759,641.60
$ 2,162,056.88
$ 233,735.88
$ 292,169.85
$ 1,402,415.27

$ 14,900,662
$ 14,433,190

$ 467,472