Problem 6-10 A call center employs 1,161 agents. Every month 43 employees leave
ID: 419114 • Letter: P
Question
Problem 6-10 A call center employs 1,161 agents. Every month 43 employees leave the company and 43 new employees are hired. a. How long on average does an agent work for this call center? Average wornkng tine2mons Suppose the cost of hiring and training a new agent is $860. The manager of this call center believes that increasing agents' salaries would keep them working longer at the company. The manager wants to increase the average time that an agent works for the call center to 36 months, or three years b-1. Given the current average working time for agents at this call center, determine the current annual cost for hiring and training 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
Throughput rate = 43/month
WIP - 1161 agents
Avg. working time = 1161/43 = 27 months
b-1 Througput rate = 43 / month = 43*12 = 516 / Year
Annual hiring & ttraining cost = 516*860 = 443760
b-2 in question it says increase to 24 months, however it should be 36 months as defined in question explaination
New Average working time =36 months = 3 years
Throughput rate / Year = WIP / Throughput time = 1161/3 = 387/Year
Annual hiring and training cost =332820
Annual saving = 110940