The small mail-order firm Sea’s Beginning has onephone line. An average of 60 people per hour call inorders, and it takes an average of one minute to handlea call. Time between calls and time to handle calls areexponentially distributed. If the phone line is busy, Sea’sBeginning can put up to c 2 1 people on hold. If c 2 1people are on hold, a caller gets a busy signal and calls acompetitor. Sea’s Beginning wants only 1% of all callersto get a busy signal. How many people should it be ableto put on hold, that is, what is the required value of c?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The small mail-order firm Sea’s Beginning has one
phone line. An average of 60 people per hour call in
orders, and it takes an average of one minute to handle
a call. Time between calls and time to handle calls are
exponentially distributed. If the phone line is busy, Sea’s
Beginning can put up to c 2 1 people on hold. If c 2 1
people are on hold, a caller gets a busy signal and calls a
competitor. Sea’s Beginning wants only 1% of all callers
to get a busy signal. How many people should it be able
to put on hold, that is, what is the required value of c?

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