1. Adeyl Khan, Faculty, BBA, NSU Elements of Queuing System ArrivalsServiceWaiting line Exit Processing order System

2. Adeyl Khan, Faculty, BBA, NSU Waiting in lines does not add enjoyment Waiting in lines does not generate revenue Waiting lines are non-value added occurrences

3. Adeyl Khan, Faculty, BBA, NSU Waiting Lines Why is there waiting?  Queuing theory  Mathematical approach to the analysis of waiting lines.  Goal of queuing analysis is to minimize the sum of two costs  Customer waiting costs  Service capacity costs

4. Adeyl Khan, Faculty, BBA, NSU Implications of Waiting Lines  Cost to provide waiting space  Loss of business  Customers leaving  Customers refusing to wait  Loss of goodwill  Quality!  Reduction in customer satisfaction  Congestion may disrupt other business operations

5. Adeyl Khan, Faculty, BBA, NSU Service capacity Queuing Analysis- balancing Optimum Cost of service capacity Cost of customers waiting Total cost Total Cost = Customer waiting cost + Capacity cost Cost

6. Adeyl Khan, Faculty, BBA, NSU System Characteristics  Population Source  Infinite source: customer arrivals are unrestricted  Finite source: number of potential customers is limited  Number of servers (channels)  Arrival and service patterns  Variability  Arrival/service rate ~ Poisson distribution  Inter-arrival/service time ~ negative exponential  Queue discipline (order of service)

7. Adeyl Khan, Faculty, BBA, NSU Multiple channel and Multiple phase Queuing Systems

8. Adeyl Khan, Faculty, BBA, NSU Poisson Distribution

9. Adeyl Khan, Faculty, BBA, NSU Waiting line Models Customers enter the waiting line and remain until served Patient Waiting customers grow impatient and leave the line Reneging Customers may switch to another line Jockeying Upon arriving, decide the line is too long and decide not to enter the line Balking

10. Adeyl Khan, Faculty, BBA, NSU Waiting Time vs. Utilization System Utilization Average number on time waiting in line 0 100% Average number of customers waiting Average time customers wait System utilization Implied cost Probability that an arrival will have to wait System Performance Example 1

11. Adeyl Khan, Faculty, BBA, NSU Queuing Models: Infinite-Source  Single channel, exponential service time  Single channel, constant service time  Multiple channel, exponential service time  Multiple priority service, exponential service time

12. Adeyl Khan, Faculty, BBA, NSU Priority Model ArrivalsServiceWaiting line Exit Processing order System 11231 Arrivals are assigned a priority as they arrive

13. Adeyl Khan, Faculty, BBA, NSU Finite-Source Formulas Average number being served Service factor Average number waiting Average waiting time Average number running Number in population Table 18.6

14. Adeyl Khan, Faculty, BBA, NSU Finite-Source Queuing Not waiting or being served Waiting Being served JLH UWT

15. Adeyl Khan, Faculty, BBA, NSU Other Approaches  Reduce perceived waiting time  Magazines in waiting rooms  Radio/television  In-flight movies  Filling out forms  Derive benefits from waiting  Place impulse items near checkout  Advertise other goods/services