A company has started a phone service that uses overseas


A company has started a phone service that uses overseas doctors to provide emergency medical consultations. The responding doctors are based in a country with low wages but with a highly skilled pool of physicians. Responding to each call takes on average 20 minutes. At any given moment in time, there are 3 doctors overseas on duty. Calls arrive every 5 minutes on average and standard deviation of the inter-arrival time is 5 minutes. The company receives $50 from the patient’s insurance company for each consultation. If one of the 3 overseas doctors is available, the firm pays $15 to the doctor and makes $35 in profit. If no doctor is available overseas, the call is rerouted to the U.S. where a local physician answers the question. A local physician is always available to take a call. In this case, the firm pays the $50 to the local physician, so there’s no profit for the company.Q12. What is the percentage of calls being answered by a physician in the US? (Write the percentage, that is, if your answer is 53.22%, input 53.22 as the answer.)

1. How much (in $) does the company pay the physicians in the US over a 5 hour period?

2. What would be the cost saving per hour (in $) from paying less money to the US physicians,if 10 doctors are on duty overseas at any given time?

3. Find ONE statement that is FALSE:

a. A process being “in control” means that there are only common causes but no assignable cause of variation in the process.

b. A process that is in control delivers the quality demanded from the customer or adownstream operation in the process.

c. The control limits are set according to how the process performed in the past.

d. Specification limits are something that are given exogenously and cannot be changed bychanging the process parameters.

e. A process that is capable is in control.

Request for Solution File

Ask an Expert for Answer!!
Operation Management: A company has started a phone service that uses overseas
Reference No:- TGS01272200

Expected delivery within 24 Hours