A husband-wife duo run a successful outdoor gear store called NB and they stock hiking and backpacking clothes, gear and accessories. They developed good reputation and realized that most of their orders came via phone, from customers who did not live close by. Hence, they decided to distribute catalogs and set up a phone order service. The service consisted of 5 phone operators working 8 hours a day, Monday to Friday. NB found that sales soared during the holiday season, but they were worried about the lost sales due to the heavy telephone traffic. An analysis showed that NB lost almost $100,000 in sales because of the poor service of their catalog department. ND hired a consultant who analyzed their system, calculated order arrival and service times. She also offered NB several strategic options given their limitation of floor space which can accommodate a maximum of 10 operators. To determine: Which service configuration should NB adopt to achieve their goals and why.

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Chapter 5, Problem 4.1CP

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A husband-wife duo run a successful outdoor gear store called NB and they stock hiking and backpacking clothes, gear and accessories. They developed good reputation and realized that most of their orders came via phone, from customers who did not live close by. Hence, they decided to distribute catalogs and set up a phone order service.

The service consisted of 5 phone operators working 8 hours a day, Monday to Friday. NB found that sales soared during the holiday season, but they were worried about the lost sales due to the heavy telephone traffic. An analysis showed that NB lost almost $100,000 in sales because of the poor service of their catalog department.

ND hired a consultant who analyzed their system, calculated order arrival and service times. She also offered NB several strategic options given their limitation of floor space which can accommodate a maximum of 10 operators.

To determine: Which service configuration should NB adopt to achieve their goals and why.

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