A call center employs 1,400 agents. Every month 50 employees leave the company a
ID: 428817 • Letter: A
Question
A call center employs 1,400 agents. Every month 50 employees leave the company and 50 new employees are hired a. How long on average does an agent work for this call center? Average working time Suppose the cost of hiring and training a new agent is $1,000. The manager of this call center believes that increasing agents' salaries would keep them working longer at the 28 months company. The manager wants to increase the average time that an agent works for the call center to 48 months, or four years. b-1. Given the current average working time for agents at this call center, determine the current annual cost for hiring and training. Current annual cost 600000 b-2. Assuming the average time that an agent works for the call center is increased to 24 months, determine the new annual cost for hiring and training New annual cost b-3. If the time an agent works for the call center is increased to 24 months on average, how much could the company save on hiring and training costs over a year? Annual savingExplanation / Answer
a. How long on average does an agent work for this call center?
Number of units Throughput Rate = 50 people/month
Work in Progress= 1400 people
Throughput Time(Average working time)= Average processing time = WIP/TR
= 1400/50
= 28 months
b-1. Given the current average working time for agents at this call center, determine the current annual cost for hiring and training. Current annual cost
Throughput Rate = 50 people/month = 600 people/year
Annual hiring and training cost= 600*1000=$600,000
b-2. Assuming the average time that an agent works for the call center is increased to 24 months, determine the new annual cost for hiring and training.
Average working time = Throughput Time = 24 months = 2 years
Throughput Rate
= WIP/ Throughput Time
= 1400 people/ 2 years
= 700 people/ year
Annual hiring and training cost is 700*1000=$700,000
b-3. If the time an agent works for the call center is increased to 24 months on average, how much could the company save on hiring and training costs over a year? Annual saving $
Annual saving on hiring and training cost
= $600,000 -$700,000
= - $100,000
There is an increase in cost of $100,000
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