customers that will be served in one day. It means that one tech rep isresponsible for 100 customers in the year. Before this change the tech repwas responsible for 150 mashines. This decreased number of machinesmeans that tech representative can establish better relationship with thecustomers, because he can better memorize the customers individually andcan also deal faster with them. It could cause in turn the reduced time of reparations if tech rep already knows the machines and is aware of previous problems with the machine. According to those calculations weneed to employ 5.000 additional tech reps. It will cost us additional 300 Mioand the yearly cost equals to 900 MIO USD.Furthermore we state that according to this policy each customer spends intotal in average four hours in the system, as he in average needs two hoursto wait for the tech rep and two hours to wait till the tech rep finishes hiswork. The most repair waiting times will be between 1,2 and 6,8 hours. Thistime did not change to the original case.
Option 2: New equipmentW(hour)Wq(hour)WrHAd. Cost-one time(MIO)AverageCost (MIO)42,41,6 (+-0,8)60 %500600
The biggest change to the option ist hat we do not hire new staff but wereduce the reparation time. Using the new equipment the tech rep will inaverage need 1,6 h to finish the machine. It means that the average timefort he repair is between 0,8h and 2,4h. There is a big change in comparisontot he option nr.1. It means that during a busy season he or she can serve 5machines a day- one machine more than in previous case. In case of thebusy season it will raise the customer satisfaction becasue it will reduce theirwaiting time. The average time did not change in comparison with the previous case. Thisis caused because on the one side the time for reparaiton was reduced, buton the other side the queuing time increased. With usage of this system thetech rep spends in average 60 % of his time repairing the machines (way tocustomers included) and still has 40 % of his time for administrative work.Additional cost as well as average cost increased by 200 Mio USD incomparison with the option Nr.1. It is caused by relativelly expensiveequipment. However, we need to keep in mind that there is one-time cost.We estimate that the tech rep can operate in average for four years with this