Airline – Report Draft
Airlines is establishing a new telephone system for handling flight reservations.
During the 10:00 a.m. to 11:00 a.m. time period, calls to the agent occur at an average of 1 call every 3.75 minutes. Historical service time data show that an agent spends an average of 3 minutes with each customer.
US the waiting linemodel assumptions of Poisson arrivals and exponential service times for our calculations. Its believed that offering an efficient telephone reservationsystem is important to establish a service-oriented image and good customer relations,
If the telephone reservation systemis frequently overloaded a negativecustomer reaction could lead to loss of business. The cost of a ticket agent is $20 per hour. Management want to provide good service without
incurring the cost of overstaffing.
Random Calls | Average time | Rate of | ||||||||||||||||
on Average | Agent spend | Pay per hr | ||||||||||||||||
Telephone System for flight reservations | 10-11am | each customer | ||||||||||||||||
1 every 3.75 mins | 3 mins | $20 | ||||||||||||||||
Goals | implement proper system to establish good customer relations, increase business | |||||||||||||||||
Regional management team decided at the Planning Mtg – resonable service goal to answer 85% of incoming calls immediately | ||||||||||||||||||
VP of Administration (regional) | avg service rate for an agent is faster than the avg arrival rate of the telephone calls | |||||||||||||||||
personal cost could be minimized if they use 1 agent – must be able to handle | ||||||||||||||||||
telephone reservations and still have some idle time | ||||||||||||||||||
VP Marketing | importance of Customer service and suggests at least 2 reservation agents | |||||||||||||||||
Rep from telephone cmp | suggest expanding telephone system that accomodates waiting | |||||||||||||||||
INSTRUCTIONS FOR WRITER about the document layout:
Prepare a point form document for analyzing the telphone reservation system. Evaluate both the system that does not allow waiting and the expanded system that allows waiting. Include : |
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1. A analysis of the operating characteristics of the reservation system with one agent. What is your recommendation concerning a single-agent system? 3 points is good | ||||||||||||||||||
2. A analysis of the operating characteristics of the reservation system based on your feedback regarding the # of agents they should use. 3 points | ||||||||||||||||||
3. Talks about the 3 advantages and3 disadvantages of the expanded system. Discuss the # of waiting callers the expanded system would need to accommodate. | ||||||||||||||||||
4. This document represents a pilot study of the reservation system for the 10-11am time period during which an avg of one call arrives every 3.75 mins; however, the arrival rate of incoming calls is epected | ||||||||||||||||||
to change fron hr to hr. Describe how your waiting line analysis could be used to develop a ticket agent staffing plan that would enable the company to provide dif levels of staffing for the ticket reservation system at dif times of the day. | ||||||||||||||||||