Running Head: QUEUE MODELS

Queue Models Analysis

Last name, First name

Course No/Title

Course Instructor

Submission Date
QUEUE MODELS

Trade-Off Considerations

The study of queuing theory is one of the most widely used techniques for operation

research techniques. The theory owes its development to Erlang’s effort to analyze telephone

traffic intensity with a view to satisfying the rising demand for the service. Customers are

directly involved in the ongoing operations of a call center with a tremendous variability

characteristic. Dealing with customer variability is a key task for making the new call center

cost-effective [ CITATION Fre16 \l 2057 ]. The M/M/s queue model was selected with a trade-off

consideration to balance the added cost of service compared to the essential wait cost while

managing the customer variability. The goal of queuing analysis was to minimize total cost,

maximize efficiency, reduce the average wait time, and keep the abandonment rate at an

acceptable level.

The data from the scenario was plugged into the M/M/s model, along with an arrival

rate of 30 per hour (1.5 per 3 minutes) and a service rate of 20 per hour (0.99 per 3 minutes).

The “What-If” analysis tool was run for determining the optimal number of server usage,

which was two servers for managing the queue. The queue performance with the current

setup was average utilization of 75%, with an average of 3.43 customers in the system, and

3.21 minutes in average time in queue. The probability that the system would be full was

0.85%, with a bulking probability rate of less than 1%.

The M/M/s queuing model was able to handle the traffic quite well with the optimal

number of two servers at a minimal total cost of $31.71. A total cost based on the system was

also performed with the same analysis tool, and the outcome was two servers to minimize

cost and maximize efficiency. In both setups, the margin of change was minimal, but they

both determined that the level of service capacity to minimize total cost while ensuring

maximum handling of the customers was two servers. One server will cause the loss of a
QUEUE MODELS

customer, which remains at an unacceptable rate for the call center. Any higher will result in

revenue loss due to servers serving below the average of 1.5 customers per 3 minutes,

meaning an excess of an unutilized server.

Change in Cost of Wait

I would still consider the M/M/s model, which is basically relevant for the company’s

new call center in Kota Kinabalu. When the cost of wait is set higher, it means the company

value the customer more [ CITATION Que \l 2057 ]. It means the company will have a much

better quality of service, and customer satisfaction will provide the company with a

competitive gain in the market place. The total cost of wait is based on waiting time and the

cost of waiting. M/M/s queue model with the given data is most likely to reduce the total time

spent in waiting, which will eventually reduce the overall cost of waiting. Additionally, the

smooth process movement with a bulking probability of less than 1% will ensure an

acceptable level of customer satisfaction, which will result in increased capacity and lower

wait cost.
QUEUE MODELS

References

Frei, F. X. (2016, November). Breaking the Trade-Off Between Efficiency and Service.

Retrieved from Harward Business Review: Breaking the Trade-Off Between

Efficiency and Service

Queuing Optimization. (n.d.). Retrieved from Revoledu:

https://people.revoledu.com/kardi/tutorial/Queuing/Queuing-Optimization.html