Service Operations

and
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Case study: Single-server model
Reference
Vogel, M. A., “Queuing Theory Applied to Machine Manning,”
Interfaces, Aug. 79.

Company
Becton - Dickinson, mfg. of hypodermic needles and syringes

Bottom line
Cash savings = $575K / yr.
Also increased production by 80%.

Problem
High-speed machines jammed frequently. Attendants cleared jams. How
many machines should each attendant monitor?

Model
Basic single-server:
Server—Attendant
Customer—Jammed machine
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Case study (cont.)
Solution procedure
Each machine jammed at rate of λ = 60/hr.

With M machines, arrival rate to each attendant is λ = 60M

Service rate is μ = 450/hr.

Utilization ratio = 60M/450

Experimenting with different values of M produced an arrival rate that

minimized costs (wages + lost production)

M = 5 was optimal, compared to M = 1 before queuing study

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Case study: Multiple-server model
Reference
Deutch, H. and Mabert, V. A., “Queuing Theory Applied to Teller Staffing,”
Interfaces, Oct., 1980.

Company
Bankers Trust Co. of New York

Bottom line
Annual cash savings of $1,000,000 in reduced wages. Cost to develop
model of $110,000.

Problem
Determine number of tellers to be on duty per hour of day to meet goals for
waiting time. Staffing decisions needed at 100 branch banks.

Model
Straightforward application of multi-channel model in text.
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Case study (cont.)
Analysis
Development of arrival and service distributions by hour and day
of week at each bank.

Arrival and service shown to be Poisson / Exponential.

Experimentation with number of servers in model showed that full-time

tellers were idle much of the day.

Result
Elimination of 100 full-time tellers. Increased use of part-time tellers.

Today, the multi-channel model is a standard tool for staffing

decisions in banking.

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Queuing model structures

Single-server model

Source Service
pop. facility

Pop. Arrival Queue Service time

can be rate capacity can usually exp.,
finite or must be be finite but can be
infinite Poisson or infinite anything

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Queuing model structures (cont.)
Multiple-server model Service
facility
#1
Source
pop. Service
facility
Pop. Arrival Queue #2
must be rate capacity
infinite must be must be
Poisson infinite
Service time
for each
Note: There is only one queue server must
regardless of nbr. of servers have same
mean and
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be exp. 7
Applying the single-server model
1. Analyze service times.
- plot actual vs. exponential distribution
- if exponential good fit, use it
- otherwise compute σ of times

2. Analyze arrival rates.

- plot actual vs. Poisson Distribution
- if Poisson good fit, use it
- if not, stop—only alternative is simulation

3. Determine queue capacity.

- infinite or finite?
- if uncertain, compare results from alternative models

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Applying the single-server model
(cont.)
4. Determine size of source population.
- infinite or finite?
- if uncertain, compare results from alternative models

5. Choose model from SINGLEQ worksheet.

SINGLEQ.xls
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Applying the multiple-server model
1. Analyze service times.
- Must be exponential

2. Analyze arrival rates.

- Must be Poisson

3. Queue capacity must be infinite.

4. Source population must be infinite.

5. Apply MULTIQ worksheet.

MULTIQ.xls
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Single-server equations
Arrival rate = λ
Service rate = μ
Mean number in queue = λ2/(μ(μ-λ))
Mean number in system = λ /(μ-λ)
Mean time in queue = λ /(μ(μ-λ))
Mean time in system = 1/(μ-λ)
Utilization ratio = λ /μ
(Prob. server is busy)

SINGLEQ.xls
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Utilization ratio vs. queue length

λ μ λ/μ Queue length

5 20 .25 0.08 people
10 20 .50 0.50
15 20 .75 2.25
19 20 .95 18.05
19.5 20 .975 38.03
19.6 20 .98 48.02
19.7 20 .985 64.68
19.8 20 .99 98.01
19.9 20 .995 198.01
19.95 20 .997 398.00
19.99 20 .999 1,998.00
20 20 1.000 
SINGLEQ.xls
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Single-server queuing identities
A. Number units in system = arrival rate * mean time in system

B. Number units in queue = arrival rate * mean time in queue

C. Mean time in system = mean time in queue + mean service time

Note: Mean service time = 1/ mean service rate

If we can determine only one of the following, all other values can be
found by substitution:
Number units in system or queue
Mean time in system or queue

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State diagram: single-server model
A A A

# in system 0 1 2 3

S S S

● # in system also called state.

● To get from one state to another, an arrival (a) must occur or

a service completion (s) must occur.

● In long-run, for each state:

Rate in = Rate out
Mean # A = Mean # S
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Balance equations for each state
State Rate in = Rate out
0 SP1 AP0

Probability in Probability in
state 1 state 0

The only way The only way

into state 0 out of state 0
is service is to have
completion from 1 an arrival

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Balance equations for each state
(cont.)
State Rate in = Rate out
1 AP0 + SP2 = AP1 + SP1

Can arrive Two ways

state 1 by out of state 1,
arrival from 0 arrival or
or service service completion
completion from 2

2 AP1 + SP3 = AP2 + SP2

3 AP2 + SP4 = AP3 + SP3

etc.
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Solution of balance equations

Expected number in system = ΣnPn

Solve equations simultaneously to get each probability.

Given number in system, all other values are found by substitution in

queuing identities.

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