How to get request time and calculate profits?… 1 answer below »

Between midnight and 8am, the probabilities of an incoming request being through e-mail, web chat, or phone are 0.5, 0.3, and 0.2 respectively. These probabilities are 0.15, 0.25, and 0.6 respectively between 8am and 4pm, and 0.3, 0.3, and 0.4 respectively between 4pm and midnight. Service time for e-mail requests is normally distributed with a mean of 23 minutes and standard deviation of 3 minutes; service time for phone requests is uniformly distributed between 2 and 28 minutes, and service time for web chat requests is given below: Service time distribution for web chat requests Service Time (minutes) Probability 2 .15 3 .24 4 .25 5 .18 6 .12 8 .06 ITM501 S13 Amir Gandomi Page 2 of 3 ABC estimates that the recent expansion of their business into new areas will result in high demand levels. The distributions of incoming service requests for different time periods will be as follows: ? between 12am and 8am exponential with a rate of 2.5 requests per hour, ? between 8am and 4pm exponential with a rate of 3 requests per hour, ? between 4pm and 12am exponential with a rate of 1 request per hour, They predict that unacceptable service levels could lead to loss business either in terms of lost clientele or shrinkage of the volume of business from existing clientele. Examining data available from industry has led them to assume that the amount ($) of lost business from each minute of delay in responding to a client request (phone and web-chat) will be random with a BetaPert distribution where the best, worst, and most likely values are $0.07/min, $0.15/min, and $0.09/min, respectively. The delay for these channels can be defined as the time that is elapsed between the arrival of a request and the start of a response. The cost of delay for e-mail requests (defined as the time between 30 minutes after the receipt of a service request and the time stamp on the response e-mail) is uniform between $0.04/min and $0.09/min. The costs related to help desk staffing are simply the cost of labour (help desk staff wages) and the cost of lost business. ABC pays $650/week to each of the help desk staff, each of whom will be working one of the shifts every day for 7 days a week. The decision that ABC is facing is how many Help Desk staff to assign to each shift to minimize help desk related costs. Your job is to help them with this decision by simulating these costs (weekly) using Crystal Ball. The alternatives to consider are whether to assign 1 or 2 staff to each shift. Therefore there exist 8 alternatives: . The cost estimates should be based on 500 replications (weeks) of the simulation. ITM501 S13 Amir Gandomi Page 3 of 3 Deliverables 1. Executive Report (to be submitted through Blackboard by Friday, August 9, 2013, 11:59pm, one per group): This is a professionally written report summarizing your analysis and justifying your recommendation to an ABC manager who understands their business problem, but does not necessarily know much about simulations or anything else you have learnt in this class. Submit a Word file named according to the following format: __ Executive Report.docx (e.g. Gandomi_Obama Executive Report.docx) 2. Detailed Analysis (to be submitted through Blackboard by Friday August 9, 2013, 11:59pm, one per group): This is a Crystal Ball/Excel file supported by sufficient explanations of your model. It should be intended for someone (such as your instructor) who is knowledgeable about how decision modeling and simulation work. __ Detailed Analysis.xls (e.g. Gandomi_Obama Detailed Analysis.xls) 3. Group members evaluation (to be emailed to your instructor by each student by Saturday August 10, 2013, 11:59pm): Your name, a brief description of the work that each of your group members has done and your assessment of their work (a grade out of 10). Clearly, this is only applicable to groups with 2 or 3 members. You can use the following format for the evaluation report:

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