Essay about Regional Airlines

TO:
FROM:
DATE: May 2, 2015
SUBJECT: Regional Airlines

PROBLEM STATEMENT
Regional airlines wants to incorporate a new telephone system that would help them cut down the amount of callers being blocked and or waiting for a ticket reservation agent, ultimately helping the get a better image as a service oriented airline. They want to meet a goal of answering 85 % of calls immediately as they come in, while also being cost effective.

QUANTITATIVE RESULTS
1. Regional airlines has asked for us to analyze the current reservation system that does not allow callers to wait in line to see how many reservation agents would be needed to meet their goal . Using the no waiting allowed model to determine the operation characteristics for Regional Airlines, we can see that;
The probability that a caller will be blocked is 2.94%
The average number of callers in the system is 1.2132
The number of channels busy and probability;
1 channel gives a 36.14 % chance of being blocked
2 channels gives a 22.59 % chance of being blocked
3 channels gives a 9.41 % chance of being blocked
4 channels gives a 2.94 % chance of being blocked 2. Regional Airlines has received an expanded system proposal from the phone company. In order to determine if this system is going to be cost efficient and time efficient they have asked us to analyze the expanded system to see how many agents would be needed to meet the service goal of 85% calls answered immediately. The have 16 customers on average call in 1 hour giving them an arrival rate of .266666667 customers calling every minute. On average they can take care of 20 customers in 1 hour giving them a service rate of .33333333 customer being served every minute. Using the single-channel waiting line model, I have determined that;
The probability that no customers are in the system is 20 %
The average number of customer in the waiting line is 3.2002
The average number of customers in the system is 4.0002
The average time a customer spends in the waiting line is 12.0007 Minutes
The average time a customer spend in the system is 15.0008 minutes The probability an arriving customer has to wait is 80%

Using the multiple-channel waiting line model, with the number of agents increasing to 2, an arrival rate of .26666667 and service rate of .3333333 per channel, it is determined that;
The probability that no customers are in the system is 42.86%
The average number of customer in the waiting line is 0.1524 every minute
The average number of customers in the system is 0.9524 per minute
The average time a customer spends in the waiting line is 0.5714 minutes
The average time a customer spends in the system 3.5714 minutes
The probability an arriving customer has to wait is 22.86%
3. In order to meet the goal of answering 85% of calls immediately, Regional Airlines would need to have a minimum of 3 Agents available to answer calls in a no wait waiting allowed system with the probability that a caller will be blocked at 9.41%.
Using this single channel waiting line model with 1 agent, we can see that the goal of 85% of customer calls being answered immediately will not be met. With the probability that an arriving customer has to wait is 80%, that means that only 1 in 5 customers will have their calls answered immediately.
Using the multiple channel waiting line system, Regional airlines goal of answer 85% of calls immediately would not be met if they utilized a 2 channel system. Only 77.14% of calls would be answered immediately. However if they move to a 3 agent system using the multiple channels waiting line model they would meet their goal

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