Question

Market Makers Inc. (MMI) provides a range of services to its retail clients customer service for Inquiries, order taking credit checking for new customers, and a variety of related services. Auto Supermarket (AS) is a large auto dealer that provides financing for the autos and trucks that it sells. AS has approached MMI to manage the Inquiries that come in regarding these loans. AS is not satisfied with the performance of the call center lt currently uses for handling Inquiries on these loons and is considering a change to MMIMMI has been asked to estimate the cost of providing the service for the coming year. There are two types of loans at AS, one for autos and SUVs and another for light trucks. The loans for auto and truck buyers typically have different types of customers and loan terms, so the nature and volume of the Inquiries are expected to differ. MMI would use its own call center to handle the AS engagement. The MMI call center's annual costs are as follows: call center costs Salaries Utilities Leasing of facilities Other expenses 84.233.555 2.497.446 1.995,513 820.036 39,546,550 MMI's call center is staffed 12 hours per day with 60 call staff always available. Each staff member has a paid 10 minute break for each hour worked, and an unpaid 1-hour break for a lunch/dinner during each 12-hour shift. Thus, the call center has 12,045,000 minutes (11 hr 50 min 60 staff 365 days) available for calls during the year. AS and MMI work together to estimate the number of calls and time required for each call, based on AS's prior experience with its current call center.

Answer 1

	Total Call Answered	Average Minute Per call	Total Minutes( total Call answered X Average Minute per call)
Platinum Regional Bank	2,32,900	6.00	13,97,400.0
healthwise soft me	66,798	5.00	3,33,990.0
Johnson Manufacturing	1,21,565	4.00	4,86,260.0
Lesco Online shopping	2,32,656	6.00	13,95,936.0
Badcock insurance service	55,465	5.50	3,05,058.0
Garcia electric supply	38,966	3.40	1,32,485.0
Gilbert Online Garden Supply	1,44,802	4.50	6,51,609.0
Financial Planning Service	69,003	11.00	7,59,033.0
Porter camera Optical	1,97,340	5.50	10,85,370.0
Jordan Auto	9,64,787	3.50	33,76,755.0
Total capacity used without AS			99,23,896.0
Become client
Number of minutes in hr-a	50
Hour per shift-b	11
Number of days in a Year-c	365
Number of staf-d	60
Call center- Capacity( in minute)(a*b*c*d)=E	1,20,45,000	a
Total Capacity used without AS	99,23,896	b
became client
Idle capacity in minutes-F	21,21,104	(a-b)
% of idle capacity(F/E)	17.61%

Second part

Process credit check	Request	Minutes per request	Total minutes( request X minutes per request)
Auto	45,490	7	3,18,430
Truck	12,390	12	1,48,680
Total minutes for processing			4,67,110
of credit check

Total Minute for procesing of credit	4,67,110
check for AS
Total Minutes used for AS	16,18,610
Other than credit checking
Minutes used by customer	99,23,896
Other than AB
Total capacity Minutes used	1,20,09,616	a
Call center capacity in minutes-e	1,20,45,000	b
Idle capacity in minutes-f	35,384.0	(b-a)
% of idle capacity(f/e)	0.29%

Total annum cost call center$	95,46,550
call center capacity in minute	1,20,45,000
cost per minute ( $/ Minute)	0.7926
cost of idle capacity$	28,044
( 35384*0.79)