Dimensioning Large Call Centers

Sem Borst (), Avi Mandelbaum () and Martin I. Reiman ()
Additional contact information
Sem Borst: CWI, P. O. Box 94079, 1090 GB Amsterdam, The Netherlands, and Bell Labs, Lucent Technologies, Murray Hill, New Jersey 07974-0636
Avi Mandelbaum: Faculty of Industrial Engineering and Management, Technion, Haifa 32000, Israel
Martin I. Reiman: Bell Labs, Lucent Technologies, Murray Hill, New Jersey 07974-0636

Operations Research, 2004, vol. 52, issue 1, 17-34

Abstract: We develop a framework for asymptotic optimization of a queueing system. The motivation is the staffing problem of large call centers, which we have modeled as M/M/N queues with N , the number of agents, being large. Within our framework, we determine the asymptotically optimal staffing level N * that trades off agents' costs with service quality: the higher the latter, the more expensive is the former. As an alternative to this optimization, we also develop a constraint satisfaction approach where one chooses the least N * that adheres to a given constraint on waiting cost. Either way, the analysis gives rise to three regimes of operation: quality-driven, where the focus is on service quality; efficiency-driven, which emphasizes agents' costs; and a rationalized regime that balances, and in fact unifies, the other two. Numerical experiments reveal remarkable accuracy of our asymptotic approximations: over a wide range of parameters, from the very small to the extremely large, N * is exactly optimal, or it is accurate to within a single agent. We demonstrate the utility of our approach by revisiting the square-root safety staffing principle, which is a long-existing rule of thumb for staffing the M/M/N queue. In its simplest form, our rule is as follows: if c is the hourly cost of an agent, and a is the hourly cost of customers' delay, then N * = R + y* (a/c)(sqrt)R , where R is the offered load, and y *(·) is a function that is easily computable.

Keywords: Queues; optimization: choosing optimal number of servers; Queues; limit theorems: many server queues (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (92)

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