Queuing Theory Models By Nancy Hutchins Agenda • • • • • • • What is queuing Why is queuing important How can this help our company Explanation How it works Summary Reading list What is Queuing? • A queue is a line of waiting people, vehicles, products, etc. • Queuing theory models use a mathematical approach to study queues and make them as efficient as possible Video Clip Office Space Grid Lock Why is this important? Inadequate queue management may lead to • Customers leaving before completing their transaction • Decrease in customer satisfaction • Reduction in number of return customers Why is this important? • Retaining customers much more cost effective than finding new customers • Many businesses depend on revenue from repeat customers How can this help your company? • • • • • Decrease average customer wait time Increase customer satisfaction Increase number of return customers Increase revenue Increase positive word-of-mouth customer advertising Basic Ways to Manage Queues • • • • Train employees to be friendly Segment customers by needs Ensure customers know what to expect Divert the customer’s attention during wait times • Encourage customers to come during slack times **Jacobs, F. Robert, and Richard B. Chase. "5." Operations and Supply Management The Core. New York: Irwin Professional Pub, 2006. 112. Print. The Queuing System Source Population & Arrival Rate Servicing System Condition of Exiting Customers Source Population Finite • Limited size • Probabilities affected by an increase/decrease in the population Infinite • Large size • Probabilities not affected by an increase/decrease in the population Distribution of Arrivals • Arrival Rate: is the number of units per period – Constant – Variable Exponential Distribution t (minutes) f(t)= λe ^ (-λt) Probability Probability that the next that the next arrival will arrival will occur in t occur in t minutes or minutes or more less 0 1.00 0 0.5 0.61 0.39 1.0 0.37 0.63 1.5 0.22 0.78 2.0 0.14 0.86 **Jacobs, F. Robert, and Richard B. Chase. "5." Operations and Supply Management The Core. New York: Irwin Professional Pub, 2006. 114. Print. Customer Arrivals in Queues • Arrival Characteristics – – – – Distribution Pattern Size of Arrival Degree of Patience Probability of n Arrivals in Time T Poisson Distribution 0.224 PT(n) = 0.224 0.149 0.16 0.102 Mean = 𝜆 = 3 0.05 1 𝜆𝑇 𝑛 𝑒 −𝜆𝑇 𝑛! 2 3 4 5 6 7 8 Number of Arrivals (n) Variance = 𝜆 = 3 9 10 **Jacobs, F. Robert, and Richard B. Chase. "5." Operations and Supply Management The Core. New York: Irwin Professional Pub, 2006. 115. Print. 11 Pattern of Arrivals Controllable Pattern Uncontrollable Size of Arrival Units Single Size of Arrival Units Batch Degree of Patience Patient (in line and stay) Degree of Patience Arrive, View, and Leave Impatient Arrive, Wait Awhile, then Leave Queuing System Factors • Length – Infinite potential length – Limited capacity • Number of Lines – Single – Multiple • Queue Discipline Queue Discipline First Come, First Served (FCFS) Emergencies First Shortest Processing Time Limited Needs Reservations First Other Service Time Distribution • Service rate: the capacity of the server in number of units per time period and not as service time. **Jacobs, F. Robert, and Richard B. Chase. "5." Operations and Supply Management The Core. New York: Irwin Professional Pub, 2006. 118. Print. Line Structures • • • • • Single Channel, Single Phase Single Channel, Multiphase Multichannel, Single phase Multichannel, multiphase Mixed Exiting the Queuing System Low Probability of Re-service Exit Return to Source Population Layout Service Phase Source Population Arrival Pattern Queue Discipline Service Pattern Permissible Queue Length 1 Single Channel Single Infinite Poisson FCFS Exponential Unlimited One-lane toll bridge 2 Single Channel Single Infinite Poisson FCFS Constant Unlimited Roller coaster rides in amusement park 3 Multichannel Single Infinite Poisson FCFS Exponential Unlimited Parts counter in auto agency Example Model Properties of Some Specific Line Models **Jacobs, F. Robert, and Richard B. Chase. "5." Operations and Supply Management The Core. New York: Irwin Professional Pub, 2006. 121. Print. Infinite Queuing Notation: Models 1-3 • λ = arrival rate • µ = service rate • 1/µ = average service time • 1/λ = average time between arrivals • ρ = ratio of total arrival rate to service rate for a single server (λ/µ) • Lq = average number waiting in line • Ls = average number in system (including and being served) **Jacobs, F. Robert, and Richard B. Chase. "5." Operations and Supply Management The Core. New York: Irwin Professional Pub, 2006. 121. Print. Infinite Queuing Notation: Models 1-3 • Wq = average time waiting in line • Ws = average total time in system (including time to be served) • n = number of units in the system • S = number of identical service channels • Pn = Probability of exactly n units in system • Pw = Probability of waiting in line Equations for Model 1 • 𝜆2 Lq = 𝜇(𝜇−𝜆) • Ls = 𝜆 𝜇−𝜆 • Wq = • Ws = Lq 𝜆 Ls 𝜆 • Pn = (1 − • ρ= 𝜆 𝜆 𝑛 )( ) 𝜇 𝜇 𝜆 𝜇 • Po = (1 − 𝜆 ) 𝜇 Equations for Model 2 and 3 Model 2 • Model 3 𝜆2 Lq = 2𝜇(𝜇−𝜆) • Ls = 𝜆 Lq + 𝜇 • Wq = • Ws = Lq 𝜆 Ls 𝜆 • Ls = 𝜆 Lq + 𝜇 • Wq = • Ws = Lq 𝜆 Ls 𝜆 𝑆𝜇 𝜆 • Pw = Lq ( − 1) Brainstorming Exercise Summary • Effective queue management may lead to improved customer satisfaction and increased revenue • Many queue management methods require little money to implement • Software is available to help with queue analysis Reading List • An Introduction to Queuing Theory: Modeling and Analysis in Applications (Statistics for Industry and Technology) by U. Narayan Bhat • Introduction to Queuing Networks by Erol Gelenbe and Guy Pujolle • Optimal Design of Queuing Systems by Shaler Stidham • Fundamentals of Queuing Theory by Donald Gross and Carl M. Harris • Operations and Supply Management The Core by Jacobs, F. Robert, and Richard B. Chase Reference ** Jacobs, F. Robert, and Richard B. Chase. "5." Operations and Supply Management The Core. New York: Irwin Professional Pub, 2006. 111-127. Print.