Bank Problem
Bank Problem
A bank is attempting to improve customer satisfaction by offering better service to its customers.
Specifically, the management wants to ensure that on average, customers wait no longer than 2
minutes before receiving service and the waiting line is no more than 2 people long. We are
provided the probability distribution of the difference between customer arrival times (ranging
from 0‐5 minutes) and the probability distribution of the time it takes for the bank to serve a
customer (ranging from 1‐4 minutes). Using these probabilities and assuming that 150 customers
arrive at the bank each day to receive service from only one server (teller), we are tasked with
establishing whether or not the bank’s current system is satisfactory. If necessary, we can then
determine the minimal changes for servers required to accomplish the management’s goal.
Assumptions
1) Customers only arrive at the bank and are served at exact minute intervals.
The data given to us is only applicable by the minute, so estimating data and
probabilities in between minutes is impossible.
2) Customers are served in the order they arrive at the bank.
Most lines (queues in general) work this way. This is necessary in order to properly count
the waiting time of customers.
3) Servers work continuously until all 150 customers have been served (no breaks), and the
time difference between serving customers is negligible.
As soon as one customer is done being served, the next customer should immediately
begin receiving service in order to keep times on the minute.
4) The service time data provided corresponds to the rate of service of a single server, and
this single server serves all the customers in the original service system.
The provided data implies that there is only one line and one server, and the rate of
service for a single server needs to be consistent for us to create a model.
5) Multiple servers work at the same rate.
Servers need to all work at the same rate given to us in order for us to be able to predict
the outcome of waiting times and the length of the queue.
6) The time for an “emergency” (back‐up) server to begin servicing customers from when
he or she is called is two minutes.
It is not practical for someone to immediately begin working when they are called, so we
added a two minute delay period during which the worker would be transitioning.
We computed the average wait time for the theoretical distribution to be 4.92761 min., whereas
the average wait time for the experimental distribution over 10000 trials evaluated to 4.9195
min., a difference of only 0.164%. With this level of accuracy, we can safely extend our computer
simulation into cases with multiple servers without having to worry about insufficient confidence
levels.
Because our theoretical model is incapable of evaluating average queue times, we assumed that
our simulation’s accuracy in average wait times is indicative of overall accuracy, especially
accuracy in average queue length, as the two quantities are closely related. Though this
assumption is not entirely justified, strong correlation between the theoretical and experimental
wait times still helps to support the validity of our computation model.
With only one server available, the experimental average queue length evaluated to 1.84773, a
value already less than the 2 persons or fewer goal desired by the manager. Because our average
wait time of 4.92761 minutes per customer is considerably over 2 minutes, however, a strategy
must be adopted to help reduce this average wait time. Furthermore, the standard deviation of
average wait times on each given day is 3.30591 minutes, indicating that the wait
times vary greatly between days.
Potential Strategy
We tested two different changes in server structure in order to reduce the average customer wait
time:
1. Increase the number of servers
2. Have additional “emergency” servers that only work when queue length exceeds a
certain number
Strategy 1: Increase the number of servers
By introducing only one additional server to the bank, we can drastically reduce both the average
queue length and average wait time of customers. Using our computer simulation, we obtained
an average wait time of 0.11285 minutes (about 6.77 seconds) and an average queue length of
0.043093, well within the 2 minute and 2 customer bounds specified. Furthermore, the standard
deviation of the daily average wait times is a negligible 0.06283 minutes (about 3.8 seconds),
indicating that the wait time is very consistently small. However, note that when two servers are
assigned there is a large period of time for which one or both of the servers are idle (on average
429.8945 server‐minutes, or 7.165 server‐hours), resulting in a greatly reduced work efficiency.
This data is summarized in Table 1.
Mean wait time Mean queue length Mean server idle time
Full‐time server 0.112851 0.043093 429.8945
Table 1: A summary of the mean statistics for the addition of a full‐time server. A full‐time server lowers
both the wait time and queue length well below the manager’s goals, but significantly increases the
amount of time servers spend idling, reducing in greatly reduced worker efficiency.
From the perspective of a manager, adding another dedicated (full‐time) server would definitely
reduce the average queue length and wait time to values below his/her desired goals, but at the
same time this strategy would waste money on hiring a full‐time server who would only work
for a small percentage of the total time.
Table 2: A comparison of three values of qenter for an emergency server. The emergency server with qenter
= 3 meets the established requirements of the manager while minimizing the mean server idle time and
time spent by the emergency server providing services.
Comparison of Strategies
Overall, adding an emergency server with qenter = 3 keeps the average wait time under two
minutes and the average queue length to at most two customers while limiting the time that
additional server provides service to an average of only 38.5 minutes each day and keeping the
server idle time to a reasonable 61.7 minutes. This makes adding an emergency server the
minimal change for servers required to accomplish the manager’s goal. A comparison of the
approaches for an emergency server, the simple additional server, and the original single server
are shown below in Table 3, and graphical representation comparing the distribution of
customer wait times for these three strategies can be found in Figure 2.
Conclusion
We model the bank service queue using approach: computational simulation. Our computational
model suggests that the best method for management to satisfy the given requirements (at most
an average queue length of 2 and at most an average wait time per customer of 2 minutes)
would be to implement a single emergency server who would only begin working when the
queue length exceeded 3 customers. If this is not feasible, adding an additional server would also
reduce the average queue length and average wait time significantly below the manager’s
requirements, though this approach would result in a significant amount of server idle time and
thus reduced worker efficiency. The emergency server would only need to provide service for
customers for an average of about 40 minutes per day, leaving plenty of time to accomplish other
tasks that a full‐time server would not be capable of completing. This makes using a single
emergency server more profitable for the bank. Additionally, during the time when the
emergency server is not interacting with customers, he/she could be performing other tasks such
as organizing files, returning messages, or answering the phone. Through our sensitivity analysis,
we also determined that, when an emergency server was present, wait times fluctuated only
slightly given different arrival and service rates, as the emergency server would always be ready
to provide services to customers once the queue increased in length.
In the future, we could apply our computational method to larger scale banks with more servers
and more customers. This would make our model more applicable to practical situations. It
would be interesting to consider different probability distributions of customer arrivals
depending on the time of day, as customers are generally more inclined to arrive at the bank at
certain times of day, such as rush hour. We could also look at the economic impacts of adding
extra servers on the management. Additionally, if we had time, we could attempt to construct a
computational method with continuous intervals between arrivals and continuous service
lengths, using integration and probability density functions to model the situation with greater
accuracy.