Chap 17 in Class Queuing

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    operationsma

    nagement

    Waiting LineWaiting Line

    ModelsModelsand Serviceand Service

    Im rovement

    ??

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    Im rovement

    o

    peration

    smana

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    Waiting is a part of lifeWaiting is a part of life

    need it always be?need it always be?

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    Waiting is a part of lifeWaiting is a part of life

    need it always be?need it always be?

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    Waiting Lines / Queues

    Waiting in lines does notadd enjoyment

    Waiting in lines does notgenerate revenue

    There are costs in providing waiting space Lines can result in loss of business

    (customers leave, refusing to wait)

    Loss of goodwill

    Overall reduction in customer satisfaction

    Congestion may disrupt other business operations

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    operationsma

    nagement

    What can help reduce

    waiting times?

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    Approaches that help

    Reduceperceivedwaiting time Magazines in waiting rooms

    Radio/television

    In-flight movies

    Filling out forms

    mirrors

    When all else fails, derive benefits from waiting

    Place impulse buy items near checkout (endcaps)

    Advertise other goods/services

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    Whats important to the Customer?

    Length of the line when I arrive

    How long I have to wait

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    Whats important to the ServiceProvider?

    How many people I have to hire to servicecustomers (clerks, cashiers, baggers, etc.)

    (Hopefully) the level of service provided

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    Waiting Lines

    You have just been hired as the new assistant

    manager of a new Costco store. You are incharge of customer service. You determine

    that: 60 shoppers arrive per hour on average You can process 50 shoppers per hour on

    average with the number of cashiers

    Will your service be any good?

    Will your customers be satisfied?

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    Waiting Lines

    60 shoppers arrive per hour on average

    You can process 60 shoppers per hour onaverage

    Will your service be any good?

    Will your customers be satisfied?

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    Waiting Lines

    60 shoppers arrive per hour on average

    You can process 70 shoppers per hour onaverage

    Will your service be any good?

    Will your customers be satisfied?

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    Waiting Lines: United States

    Whats an acceptable time to wait in line at:

    Starbucks

    Outback Steakhouse

    Post Office

    DMV

    Grocery store

    Planning Department

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    Waiting Lines

    What is a reasonable waiting time?

    Is your willingness to wait dependent

    upon the type of establishment?

    Are there cultural differences?

    Can we establish a model of wait time toreduce average wait time?

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    Who is this

    woman, and

    why is shesmiling???

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    Waiting in line to get addWaiting in line to get add

    slips signed in HTM302slips signed in HTM302

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    Elements of Waiting Line Analysis

    QueueA single waiting line

    Waiting line system consists ofArrivals

    Servers

    Waiting line structures

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    Components of Queuing System

    Source ofcustomerscallingpopulation

    ServerArrivals Waiting Lineor

    Queue

    Servedcustomers

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    Elements of a Waiting Line

    Calling populationSource of customers

    Arrival rate ( )Frequency of customer arrivals at waiting line

    system

    Typically follows Poisson distribution

    Service rateFrequency of customer services

    Often follows negative exponential distribution

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    Elements of a Waiting Line

    Arrival rate ( ) must be less than service

    rate ( or system never clears out

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    Elements of a Waiting Line

    Queue disciplineOrder in which customers are served

    First come, first served is mostcommon

    Length can be infinite or finite

    Infinite is most common assumptionFinite is limited by some physical

    structure

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    Basic Waiting Line Structures

    Channels are the number of

    parallel servers

    Phases denote number of

    sequential servers the customermust go through

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    Single-Channel Structures

    Single-channel, single-phase

    Waiting line Server

    Single-channel, multiple phases

    ServersWaiting line

    CSUSM Convenience Store (1 cashier)

    Starbucks Coffee (single cashier/barrista)

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    Multi-Channel Structures

    Servers

    Multiple-channel, single phase

    Waiting line

    CSUSM Convenience Store (3 cashiers)

    Frys Electronics (72 cashiers)

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    Predicting Waiting Times

    Later well show how you can mathematicallypredict the performance of a waiting line,

    in terms of:

    Number of people waiting in line Expected waiting time

    But first, lets look first at some model results toget an intuitive feel as to what happens.

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    A Single-Server ModelNumber of Customers Waiting In Line

    with 60 customer arrivals per hour

    0

    2

    4

    6

    8

    10

    12

    65 69 73 77 81 85 89 93 97 101

    105

    109

    113

    117

    121

    Customer Served Per Hour

    Customers

    InLine

    70

    120

    Asweapproachser

    vice

    timesof60/hour,line

    growsexpone

    ntially

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    A Single-Server ModelCustomer Wait Time (in hours)

    with 60 customer arrivals per hour

    0.00

    0.02

    0.04

    0.06

    0.08

    0.10

    0.12

    0.14

    0.16

    0.18

    0.20

    65 69 73 77 81 85 89 93 97 101

    105

    109

    113

    117

    121

    Customers Served per Hour

    WaitTime(h

    ours)

    70

    120

    Asweapproachser

    vice

    timesof60/hour

    ,wait

    growsexpone

    ntially

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    A Single-Server ModelProbability Customer Waits

    with 60 customer arrivals per hour

    0.0%

    10.0%

    20.0%

    30.0%

    40.0%

    50.0%

    60.0%

    70.0%

    80.0%

    90.0%

    100.0%

    65 69 73 77 81 85 89 93 97 101

    105

    109

    113

    117

    121

    Customers served per Hour

    Probability

    70 120

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    Multi-Channel Structures

    Servers

    Waiting line

    Multiple-channel, multiple-phase

    Starbucks (3 cashiers, 3 barristas)

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    Which is better?

    Servers

    Waiting line

    ServersWaiting line

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    Which is better?

    Servers

    Waiting line

    ServersWaiting line

    T f ibiliti hi h

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    Two servers, four possibilities; whichis best?

    Servers

    Waiting lineServers

    Waiting line

    ServersWaiting line

    Servers

    Waiting line

    M lti Channel Str ct res

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    Multi-Channel Structures(that the book doesnt deal with)

    ServersWaiting lines

    Multiple-channel, single-phase

    Large Stores(Wal Mart, grocery stores, etc.)

    Multi Channel Structures

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    Multi-Channel Structures(that the book doesnt deal with)

    ParkingFeeWaiting lines

    Multiple-channel, multiple-phase

    $

    $

    $

    $

    $

    $

    Amusement Parks (Legos, Disneyland, etc.)Sporting Parks (Qualcomm, Sports Arena, etc.)Concerts (Coors Amphitheater, etc.)

    EntranceFee

    TicketCollection

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    Multi-Channel Structures

    ParkingFeeWaiting lines

    $

    $

    $

    $

    $

    $

    EntranceFee

    TicketCollection

    Heh, whyisnt this linemoving??!?

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    Operating Characteristics

    The mathematics of alternative multi-channeland multi-phase waiting lines can become verycomplex

    Mathematicsof queuing theorydoes notprovide optimal or best solutions

    However we can describe system performance

    by calculating operating characteristics

    Cost Relationship in Waiting Line

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    Cost Relationship in Waiting LineAnalysis

    Expecte

    d

    costs

    Level of service

    Waiting Cost

    The customers arepaying these costs

    Cost Relationship in Waiting Line

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    Cost Relationship in Waiting LineAnalysis

    Expecte

    d

    costs

    Level of service

    Service costThe businesses arepaying these costs

    Cost Relationship in Waiting Line

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    Cost Relationship in Waiting LineAnalysis

    Expecte

    d

    costs

    Level of service

    Total cost

    Service cost

    Waiting Costs

    Waiting Line Costs and Quality

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    Waiting Line Costs and QualityService

    Traditional view is that the level ofservice should coincide with

    minimum point on total cost curve

    TQM approach is that absolute

    quality service will be the most cost-effective in the long run

    Cost Relationship in Waiting Line

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    Cost Relationship in Waiting LineAnalysis

    Expecte

    d

    costs

    Level of service

    Total cost

    Service cost

    Waiting Costs

    Traditional suggestedservice level

    Cost Relationship in Waiting Line

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    Cost Relationship in Waiting LineAnalysis

    Expecte

    d

    costs

    Level of service

    Total cost

    Service cost

    Waiting Costs

    Better service, highercost to business

    Poorer service, highercost to customer

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    Basic Single-Server Model

    Assumptions:Poisson arrival rateExponential service times

    First-come, first-served queue disciplineInfinite queue lengthInfinite calling population

    = mean arrival rate = mean service rate

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    Formulas for Single-Server Model

    Average number ofcustomers in the system

    L = -

    Probability that no customersare in the system (either in thequeue or being served)

    P0 = 1 -

    Probability of exactly ncustomers in the system

    Pn = P0

    n

    = 1 -

    n

    Average number of

    customers in the waiting line

    Lq =

    ( -

    = mean arrival rate= mean service rate

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    Formulas for Single-Server Model

    Probability that the serveris busy and the customerhas to wait

    =

    Average time a customerspends in the queuing system

    W = =1

    -

    L

    Probability that the serveris idle and a customer canbe served

    I = 1 -

    = 1 - = P0

    Average time a customerspends waiting in line tobe served

    Wq =( - )

    = mean arrival rate

    = mean service rate

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    An example

    You manage a small grocery store, with one checker for

    scanning, collecting payment, and bagging groceries. The

    arrival rate is 24/hr, service rate 30/hr, so average waiting

    time is 8 minutes. You want to improve checkout time, so

    you are considering adding: A second employee to bag groceries

    OR

    A second checker

    Which is better?

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    An example

    2 cashiers

    Waiting line

    cashier baggerWaiting line

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    Waiting Line Cost Results

    Adding an employee results in savings andimproved customer service

    Adding a 2nd counter results in slightly

    greater savings (~$20/week) and improvedcustomer service (~1 min less waiting), butonly after the initial investment has beenrecovered (~ 5 months)

    A new counter results in more idle time foremployees

    A new counter would take up potentially

    valuable floor space

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    Simulation Model

    http://courses.csusm.edu/htm302jh/examples/QueueModel.xlshttp://courses.csusm.edu/htm302jh/examples/QueueModel.xls
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    Informal feedback

    Write a 2 minute journal to be handed inimmediately

    The journal should briefly summarize:

    Major points learned

    Areas not understood or requiringclarification