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CALL CENTERS (CENTRES) - Faculty of Industrial Engineering and ...

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algorithm (ISA), (ii) the square-root-staffing rule with service grade determined by the modified<strong>of</strong>fered-load<br />

approximation, <strong>and</strong> (iii) simply staffing at the <strong>of</strong>fered load itself.<br />

Keywords: Contact centers, Call centers, Staffing, Non-stationary queues, Queues with timedependent<br />

arrival rates, Capacity planning, Queues with ab<strong>and</strong>onment, Time-varying Erlang<br />

models<br />

149. Feldman, Z. A. M<strong>and</strong>elbaum, W.A. Massey <strong>and</strong> W. Whitt. Staffing <strong>of</strong> time-varying queues to<br />

achieve time-stable performance—Unabridged version: Internet supplement to the above-named<br />

paper. Available at .<br />

150. Harrison, J.M. <strong>and</strong> Assaf Zeevi. A method for staffing large call centers based on stochastic fluid<br />

models, Manufacturing & Service Operations Management, 7(1), Winter 2005, 20–36.<br />

Abstract. We consider a call center model with m input flows <strong>and</strong> r pools <strong>of</strong> agents; the mvector<br />

lambda <strong>of</strong> instantaneous arrival rates is allowed to be time dependent <strong>and</strong> to vary stochastically.<br />

Seeking to optimize the trade-<strong>of</strong>f between personnel costs <strong>and</strong> ab<strong>and</strong>onment penalties,<br />

we develop <strong>and</strong> illustrate a practical method for sizing the r agent pools. Using stochastic fluid<br />

models, this method reduces the staffing problem to a multidimensional news-vendor problem,<br />

which can be solved numerically by a combination <strong>of</strong> linear programming <strong>and</strong> Monte Carlo simulation.<br />

Numerical examples are presented, <strong>and</strong> in all cases the pool sizes derived by means <strong>of</strong><br />

the proposed method are very close to optimal.<br />

Keywords: Call center staffing, Stochastic fluid models, Call center model, Input flows, Personnel<br />

costs, Ab<strong>and</strong>onment penalties, Multidimensional news-vendor problem, Linear programming,<br />

Monte-Carlo simulation, Capacity sizing, Fluid analysis, Queueing process, R<strong>and</strong>om environment,<br />

Stochastic programming<br />

151. Milner, Joseph M. <strong>and</strong> Tava Lennon Olsen. Service level agreements in call centers: Perils <strong>and</strong><br />

prescriptions. Working paper, John M. Olin School <strong>of</strong> Business, September, 2004; Revised: July,<br />

2005. Available at .<br />

Abstract. A call center with both contract <strong>and</strong> non-contract customers was giving priority to<br />

the contract customers only in <strong>of</strong>f-peak hours, precisely when having priority was least important.<br />

In this paper we investigate whether this is rational behavior on the part <strong>of</strong> the call center<br />

<strong>and</strong> what the implications are for customers. In particular, we show that under contracts on the<br />

percentile <strong>of</strong> delay, which are commonly used in the call-center industry, this is rational behavior,<br />

at least under the asymptotic regime considered in the paper. We then suggest other contracts<br />

that do not result in this type <strong>of</strong> undesirable behavior from a contract customer’s perspective.<br />

We compare the performance <strong>of</strong> the different contracts in terms <strong>of</strong> mean, variance, <strong>and</strong> outer<br />

percentiles <strong>of</strong> delay for both customer types using both numerical <strong>and</strong> asymptotic heavy-traffic<br />

analyses. We argue that including terms reflecting the second moment <strong>of</strong> delay in a contract<br />

would be beneficial to contract customers <strong>and</strong>, in a sense, fairer.<br />

152. Ormeci, E. Lerzan <strong>and</strong> O. Zeynep Aksin. Revenue management through dynamic cross-selling<br />

in call centers. Working paper, Koc University, August 2004; revised October 2005. Available<br />

57

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