PCOA 009 – MANAGEMENT SCIENCE

Module 4: Waiting Line Models

Introduction
• This module is about the probabilities of waiting line.
• The module is organized as follows:
o Introduction to Waiting Line Model
o Single-Server Waiting Line with Poisson Arrivals and Exponential Service Times
o Operating characteristics of Single-Server Waiting Line
o Multiple-Server Waiting Line Model with Poisson Arrivals and Exponential
Service Times
o Assessment
• This module tackles about Waiting Line Models (Queuing Theory) which aims to find the
ideal level of services that minimize the cost of waiting and the cost of providing the service
• Topic requires basic knowledge of algebra and critical thinking and analysis
• Assessment is the theoretical and application of Waiting Line Model.
Learning Outcomes
At the end of this module, the students can:
• Identify the various cost implications and the key features of waiting lines.
• Employ various queuing models and understand when and how to use them to calculate
optimal queuing solutions, including the psychology underlying waiting lines.

Waiting Line Models

Recall the last time that you had to wait at a supermarket checkout counter, for a teller at your
local bank, or to be served at a fast-food restaurant. In these and many other waiting line situations,
the time spent waiting is undesirable. Adding more checkout clerks, bank tellers, or servers is not
always the most economical strategy for improving services, so businesses need to determine ways
to keep waiting times within tolerable limits.
Models have been developed to help managers understand and make better decisions concerning
the operation of waiting lines. In management science terminology, a waiting line is also known
as a queue, and the body of knowledge dealing with waiting line is known as queuing theory. In
the early 1900s, A. K. Erlang, Danish telephone engineer, began a study of the congestion and
waiting times occurring in the completion of telephone calls. Since then, queueing theory has
grown far more sophisticated, with applications in a wide variety of waiting line situations.

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 Waiting line models consist of mathematical formulas and relationship that can be used to
determine the operating characteristics (performance measure) for a waiting line. Operating
characteristics of interest include these:
1. The probability that no units are in the system
2. The average number of units in the waiting line
3. The average number of units in the system (the number of units in the waiting line plus the
number of units being served.)
4. The average time a unit spends in the waiting line.
5. The average time a unit spends in the system (the waiting time plus the service time)
6. The probability than an arriving unit has to wait for service.
Managers who have such information are better able to make decisions that balance desirable
service levels against the cost of providing the service.
Structure of a Waiting Line
To illustrate the basic features of a waiting line model, we consider the waiting line at the Burger
Dome fast-food restaurant. Burger Dome sells hamburgers, cheeseburgers, French fries, soft
drinks, and milk shakes, as well as a limited number of specialty items and dessert selections.
Although Burger Dome would like to serve each customer immediately, at times more customers
arrive than can be handled by the Burger Dome food service staff. Thus, customers wait in line to
place and receive their orders.
Burger Dome is concerned that the methods currently used to serve customers are resulting in
excessive waiting times and a possible loss of sales. Management wants to conduct a waiting line
study to help determine the best approach to reduce waiting lines and improve service.
Single-Server Waiting Line
In the current Burger Dome operation, an employee takes a customer’s order, determine the total
cost of the order, receive payment from the customer, and then fills the order. Once the first
customer’s order is filled, the employee takes the order of the next customer waiting for service.
This operation is an example of a single-server waiting line. Each customer entering the Burger
Dome restaurant is served by a single order-filling station that handles order placement, bill
payment, and food delivery. When more customers arrive than can be served immediately, they
form a waiting line and wait for the order-filling station to become available. A diagram of the
Burger Dome single-server waiting line is shoe below.

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 Distribution of Arrivals
Defining the arrival process for a waiting line involves determining the probability distribution for
the number of arrivals in a given period of time. For many waiting line situations, the arrivals occur
randomly and independently of other arrivals, and we cannot predict when an arrival will occur.
In such cases, analysts have found that the Poisson probability distribution provides a good
description of the arrival pattern.
The Poisson probability function provides the probability of x arrivals in a specific time period.
The probability function is as follows:
𝜆𝑥 𝑒 −𝜆
P(x) = for x = 0, 1, 2, . . .
𝑥!

Where

x = the number of arrivals in the time period

λ = the mean number of arrivals per time period
e = 2.71828
the mean number of arrivals per time period, λ, is called the arrival rate. Values of 𝑒 −𝜆 can be
found using a calculator.

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 Suppose that Burger Dome analyzed data on customer arrivals and concluded that the arrival rate
is 45 customers per hour. For a one-minute period, the arrival rate would be λ = 45 customers ÷
60 minutes = 0.75 customers per minute. Thus, we can use the following Poisson probability
function to compute the probability of x customer arrivals during a one-minute period:
𝜆𝑥 𝑒 −𝜆 0.75𝑥 𝑒 −0.75
P(x) = =
𝑥! 𝑥!

Thus, the probabilities of 0, 1, and 2 customer arrivals during a one-minute period are
0.750 𝑒 −0.75
P(0) = = 𝑒 −0.75 = 0.4724
0!

0.751 𝑒 −0.75
P(1) = = 0.75𝑒 −0.75 = 0.75(0.4724) = 0.3543
1!
0.752 𝑒 −0.75 (0.5625)(0.4724)
P(2) = = = 0.1329
2! 2
The probability of no customer in one-minute period is 0.4724, the probability of one customer in
a one-minute period is 0.3543, and the probability of two customers in a one-minute period is
0.1329. The table below shows the Poisson probabilities for customer arrivals during a one-minute
period.
Number of Arrivals Probability
0 0.4724
1 0.3543
2 0.1329
3 0.0332
4 0.0062
5 or more 0.0010

In practice, you should record the actual number of arrivals per time period for several days or
weeks and compare the frequency distribution of the observed number of arrivals to the Poisson
probability distribution to determine whether the Poisson probability distribution provides a
reasonable approximation of the arrival distribution.
Distribution of Service Times
The service time is the time a customer spends at the service facility once the service has started.
At Burger Dome, the service time starts when a customer begins to place the order with the
employee and continues until the customer receives the order, Service times are rarely constant.
At Burger Dome, the number of items ordered and the mix of items ordered vary considerably
from one customer to the next. Small orders can be handled in a manner of seconds, but large
orders may require more than two minutes.

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 If the probability distribution for the service time can be assumed to follow an exponential
probability distribution, formulas are available for providing useful information about the
operation of the waiting line. Using an exponential probability distribution, the probability that the
service time will be less than or equal to a time of length t is

P(service time ≤ t) = 1 - 𝑒 µ𝑡

Where
µ = the mean number of units that can be served per time period
e = 2.71828
The mean number of units that can be served per time period, µ, is called the service rate.
Suppose that Burger Dome studied the order-filling process and found that a single employee can
process an average of 60 customer orders per hour. On a one-minute basis, the service rate would
be µ = 60 customer ÷ 60 minutes = 1 customer per minute. For example, with µ = 1, we can use
the equation to compute the probability that an order can be processed in ½ minute or less, 1 minute
or less, and 2 minutes or less. These computations are

P(service time ≤ 0.5 min.) = 1 – 𝑒 −1(0.5) = 1 – 0.6065 = 0.3935

P(service time ≤ 1.0 min.) = 1 – 𝑒 −1(1.0) = 1 – 0.3679 = 0.6321

P(service time ≤ 2.0 min.) = 1 – 𝑒 −1(2.0) = 1 – 0.1353= 0.8647

Thus, we would conclude that there is a 0.3935 probability that an order can be processed in ½
minute or less, a 0.6321 probability that it can be processed in 1 minute or less, and a 0.8647
probability that it can be processed in 2 minutes or less.
In practice, you should collect data on actual service times to determine whether the exponential
probability distribution is a reasonable approximation of service times for your application.
Queue Discipline
In describing a waiting line system, we must define the manner in which the waiting units are
arranged for service. For the Burger Dome waiting line, and in general for most customer-oriented
waiting lines, the units waiting for service are arranged on a first-come, first-served basis; this
approach is referred to as an FCFS queue discipline. However, some situations call for different
queue disciplines. For example, when people board an airplane, the last passengers to board are
typically the first to deplane since many airlines have the passengers with seat assignments in the
back of the plane board first. On the other hand, it does not seem prudent for hospital emergency
to operate under either of these queue disciplines, and so we have other types of queue disciplines
that assign priorities to the waiting units and then serve the unit with the highest priority first.

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 Steady-State Operation
When the Burger Dome restaurant opens in the morning, no customers are in the restaurant and
the characteristics of the waiting line system fluctuate depending on realized arrival and service
times. Gradually, activity builds up to a normal or steady state. The beginning or startup period is
referred to as the transient period. The transient period ends when the system reaches the normal
or steady-state operation. Waiting line models describe the steady-state operating characteristics
of a waiting line.
Single-Server Waiting Line Model with Poisson Arrivals and Exponential Service Times
Formulas that can be used to determine the steady-state operating characteristics for a single-server
waiting line. The formulas are applicable if the arrivals follow a Poisson probability distribution
and the service times follow an exponential probability distribution.
Operating Characteristics
The following formulas can be used to compute the steady-state operating characteristics for a
sing-server waiting line with Poisson arrivals and exponential service times, where

λ = the mean number of arrivals per time period (the arrival rate)
µ = the mean number of services per minute per time period (the service rate)
1. The probability that no units are in the system:
𝜆
𝑃0 = 1 –
µ
2. The average number of units in the waiting line:
𝜆2
𝐿𝑞 =
µ(µ – 𝜆)

3. The average number of units in the system:

𝜆
L = 𝐿𝑞 +
µ

4. The average time a unit spends in the waiting line:

𝐿𝑞
𝑊𝑞 =
𝜆

5. The average time a unit spends in the system:

1
W = 𝑊𝑞 +
µ
6. The probability that an arriving unit has to wait for service:

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 𝜆
𝑃𝑤 =
µ

7. The probability of n units in the system:

𝑃𝑛 = (𝜆⁄µ)𝑛 𝑃0
The values of the arrival rate λ and the service rate µ are clearly important components in
determining the operating characteristics. Equation for the (7) probability of n units in the system
shows that the ratio of the arrival rate, 𝜆⁄µ is referred to as the utilization factor for the service
facility.
The operating characteristics presented in the (1) probability that no units are in the system through
the (7) probability of n units in the system are applicable only when the service rate µ is greater
than the arrival rate λ —in other words, when 𝜆⁄µ < 1. If this condition does not exist, the waiting
line will continue to grow without limit because the service facility does not have sufficient
capacity to handle the arriving units. Thus, in using equations (1) through (7), we must have µ >
λ.
Operating Characteristics for the Burger Dome Problem
Recall that for the Burger Dome problem we had an arrival rate of λ = 0.75 customers per minute
and a service rate of µ= 1 per minute. Thus, with µ > λ, equations (1) through (7) can be used to
provide operating characteristics for the Burger Dome sing-server waiting line:
𝜆 0.75
𝑃0 = 1 – =1– = 0.25
µ 1

𝜆2 0.752
𝐿𝑞 = = = 2.25 customers
µ(µ – 𝜆) 1(1−0.75)

𝜆 0.75
L = 𝐿𝑞 + = 2.25 + = 3 customers
µ 1

𝐿𝑞 2.25
𝑊𝑞 = = = 3 minutes
𝜆 0.75

1 1
W = 𝑊𝑞 + = 3 + = 4 minutes
µ 1

𝜆 0.75
𝑃𝑤 = = = 0.75
µ 1

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 Equation (7) can be used to determine the probability of any number of customers in the system.
Applying this equation provides the portability information.
Number of Customers Probability
0 0.2500
1 0.1875
2 0.1406
3 0.1055
4 0.0791
5 0.0593
6 0.0445
7 or more 0.1335

Managers’ use of Waiting Line Models

The results of the single-server waiting line for Burger Dome show several important things about
the operation of the waiting line. In particular, customers wait an average of three minutes before
beginning to place an order, which appears somewhat long for a business based on fast service. In
addition, the facts that the average number of customers waiting in line is 2.25 and that 75% of the
arriving customers have to wait for service are indicators that something should be done to improve
the waiting line operation. The table shows a 0.1335 probability that seven or more customers are
in the Burger Dome system at one time. This condition indicates a fairly high probability that
Burger Dome will experience some long waiting lines if it continues to use the single-server
operation.
If the operating characteristics are unsatisfactory in terms of meeting company standards for
service, Burger Dome’s management should consider alternative designs or plans for improving
the waiting line operation.
Improving the Waiting Line Operation
Waiting line models often indicate when improvements in operating characteristics are desirable.
However, the decision of how to modify the waiting line configuration to improve the operating
characteristics must be based on the insights and creativity of the analyst.
After reviewing the operating characteristics provided by the waiting line model, Burger Dome’s
management concluded that improvements designed to reduce waiting times were desirable. To
make improvements in the waiting line operation, analysts often focus on ways to improve the
service rate. Generally, service rate improvements are obtained by making either or both of the
following changes:
1. Increase the service rate by making a creative design change or by using new technology.
2. Add one or more servers so that more customers can be served simultaneously.

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 Assume that in considering alternative 1, Burger Dome’s management decides to employ a design
change that allows the customer to fill out and submit a paper order form directly to the kitchen
while they are waiting in line. This allows the customer’s food to be ready by the time the employee
collects payment from the customer. With this design, Burger Dome’s management estimates the
service rat can be increased from the current 60 customers per hour to 75 customers per hour. Thus,
the service rate for the revised system is µ = 75 customers ÷ 60 minutes = 1.25 customers per
minute. For λ = 0.75 customers per minute and µ = 1.25 customers per minute, equations (1)
through (7) can be used to provide the new operating characteristics for the Burger Dome waiting
line. These operating characteristics are summarized below.
Probability of no customer in the system 0.400
Average number of customers in the waiting line 0.900
Average number of customers in the system 1.500
Average time in the waiting line 1.200 minutes
Average time in the system 2.000 minutes
Probability that an arriving customer has to wait 0.600
Probability that seven or more customers are in the system 0.028

The information in the table indicates that all operating characteristics have improved because of
the increased service rate. In particular, the average time a customer spends in the waiting line has
been reduced from 3 to 1.2 minutes, and the average time a customer spends in the system has
been reduced from 4 to 2 minutes. Are any other alternatives available for Burger Dome can use
to increase the service rate? If so, and if the mean service rate µ can be identified for each
alternative, equations (1) through (7) can be used to determine the revised operating characteristics
and any improvements in the waiting line system. The added cost of any proposed change can be
compared to the corresponding service improvements to help the manager determine whether the
proposed service improvements are worthwhile.
Multiple-Server Waiting Line Model with Poisson Arrivals and Exponential Service Times
A multiple-server waiting line consists of two or more servers that are assumed to be identical in
terms of service capability. For multiple-server systems, there are two typical queueing
possibilities: (1) arriving customers wait in a single waiting line (called a “pooled” or “shared”
queue) and then move to the first available server for processing, or (2) each server has a
“dedicated” queue and arriving customer selects one of these system design with a single shared
waiting line for all servers. Operating characteristics for a multiple-server system are typically
better when a single shared queue. Rather than multiple dedicated waiting lines, is used. The
single-server Burger Dome operation can be expanded to a two-server system by opening a second
server. Figure below shows a diagram of Burger Dome two-server waiting line.

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 Formulas that can be used to determine the steady-state operating characteristics for a multiple-
server waiting line. These formulas are applicable if the following conditions exist:
1. The arrivals follow a Poisson probability distribution.
2. The service time for each server follows an exponential probability distribution.
3. The service rate µ is the same for each server.
4. The arrivals wait in a single waiting line and then move to the first open server for
service.
Operating Characteristics
The following formulas can be used to compute the steady-state operating characteristics for
multiple-server waiting line, where
λ = the arrival rate for the system
µ = the service rate for each server
k = the number of servers
1. The probability that no units are in the system:
1
𝑃0 = 𝑘−1
(𝜆⁄µ)𝑛 (𝜆⁄µ)𝑘 𝑘µ
∑ 𝑛!
+ 𝑘! ( 𝑘µ− 𝜆)
𝑛=0

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 2. The average number of units in the waiting line:
(𝜆/µ)𝑘 𝜆µ
𝐿𝑞 = (𝑘−1)!(𝑘µ – 𝜆)2
𝑃0
3. The average number of units in the system:
𝜆
L = 𝐿𝑞 +
µ
4. The average time a unit spends time in the waiting line:
𝐿𝑞
𝑊𝑞 =
𝜆

5. The average time a unit spends in the system:

1
W = 𝑊𝑞 +
µ
6. The probability that an arriving unit has to wait for service:
1 𝑘 𝑘µ
𝑃𝑤 = (𝜆⁄µ) ( ) 𝑃0
𝑘! 𝑘µ− 𝜆
7. The probability of n units in the system:

(𝜆⁄µ)𝑛
𝑃𝑛 = 𝑃0 for n ≤ k
𝑛!

(𝜆⁄µ)𝑛
𝑃𝑛 = 𝑃 for n > k
𝑘!𝑘 (𝑛−𝑘) 0
Because µ is the service rate for each server, kµ is the service rate for the multiple-server
system. As was true for the single-server waiting line model, the formulas for the operating
characteristics of multiple-server waiting lines can be applied only in situations where the
service rate for the system exceed the arrival rate for the system; in other words, the formulas
are applicable only if kµ is greater than λ.
Some expressions for the operating characteristics of multiple-server waiting lines are more
complex than their single-server counterparts. However, equation for multiple-server (1)
through 7 provide the same information as provided by the single-server model. To help
simplify the use of the multiple-server equations the table below contains values of 𝑃0 for
selected values of 𝜆/µ and k. the values provided in the table correspond to cases where kµ >
λ, and hence the service rate is sufficient to process arrivals.

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 Ratio 𝝀/µ Number of Server (k)
2 3 4 5
0.15 0.8605 0.8607 0.8607 0.8607
0.20 0.8182 0.8187 0.8187 0.8187
0.25 0.7778 0.7788 0.7788 0.7788
0.30 0.7391 0.7407 0.7408 0.7408
0.35 0.7021 0.7046 0.7047 0.7047
0.40 0.6667 0.6701 0.6703 0.6703
0.45 0.6327 0.6373 0.6376 0.6376
0.50 0.6000 0.6061 0.6065 0.6065
0.55 0.5686 0.5763 0.5769 0.5769
0.60 0.5385 0.5479 0.5487 0.5488
0.65 0.5094 0.5209 0.5219 0.5220
0.70 0.4815 0.4952 0.4965 0.4966
0.75 0.4545 0.4706 0.4722 0.4724
0.80 0.4286 0.4472 0.4491 0.4493
0.85 0.4035 0.4248 0.4271 0.4274
0.90 0.3793 0.4035 0.4062 0.4065
0.95 0.3559 0.3831 0.3863 0.3867
1.00 0.3333 0.3636 0.3673 0.3678
1.20 0.2500 0.2941 0.3002 0.3011
1.40 0.1765 0.2360 0.2449 0.2463
1.60 0.1111 0.1872 0.1993 0.2014
1.80 0.0526 0.1460 0.1616 0.1646
2.00 0.1111 0.1304 0.1343
2.20 0.0815 0.1046 0.1094
2.40 0.0562 0.0831 0.0889
2.60 0.0345 0.0651 0.0721
2.80 0.0160 0.0521 0.0581
3.00 0.0377 0.0466
3.20 0.0273 0.0372
3.40 0.0186 0.0293
3.60 0.0113 0.0228
3.80 0.0051 0.0174
4.00 0.0130
4.20 0.0093
4.40 0.0063

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 4.60 0.0038
4.80 0.0017

Operating Charasteristics for Burger Dome Problem

To illustrate the multiple-server waiting line model, we return to the Burger Dome fast-food
restaurant waiting line problem. Suppose that management wants to evaluate the desirability of
opening a second order-processing station so that two customers can be served simultaneously.
Assume a single waiting line with the first customer in line moving to the first available server.
We use Multiple Server (1) through (7) for the k = 2-server system. For an arrival rate of λ = 0.75
customers per minute and a service rate of µ = 1 customer per minute for each server, we obtain
the operating characteristics:

𝑃0 = 0.4545
0.75 2
( ) (0.75)(1)
1
𝐿𝑞 = (2−1)![2(1) – 0.75]2
(0.4545) = 0.1227 customer

𝜆 0.75
L = 𝐿𝑞 + = 0.1227 + = 0.8727 customer
µ 1

𝐿𝑞 0.1227
𝑊𝑞 = = = 0.1636 minute
𝜆 0.75

1 1
W = 𝑊𝑞 + = 0.1636 + = 1.1636 minutes
µ 1
1 2 2(1)
𝑃𝑤 = (0.75⁄1) ( ) 0.4545 = 0.2045
2! 2(1)− 0.75

Using equations (7), we can compute the probabilities of n customers in the system. The results
from these computations are summarized below.
Number of Customers Probability
0 0.4545
1 0.3409
2 0.1278
3 0.0479
4 0.0180
5 or more 0.0109

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 We can now compare the steady-state operating characteristics of the two-server system to the
operating characteristics of the original single-server system.
1. The average time a customer spends in the system (waiting time plus service time) is
reduced from W = 4 minutes to W = 1.1636 minutes.
2. The average number of customers in the waiting line is reduced from 𝐿𝑞 = 2.25
customers to 𝐿𝑞 = 0.1227 customers.
3. The average time a customer spends in the waiting line is reduced from 𝑊𝑞 = 3 minutes
to 0.1636 minute.
4. The probability that a customer has to wait for service is reduced from 𝑃𝑤 = 0.75 to
𝑃𝑤 = 0.2045.
Cleary the two-server system will substantially improve the operating characteristics of the waiting
line. The waiting line study provides the operating characteristics that can be anticipated under
three configurations; the original single-server system, a ingle-server system with the design
change involving direct submission of paper order form to kitchen, and a two-server system
composed of two order-filling employees. After considering these results, what action would you
recommend? In this case, Burger Dome adopted the following policy statement: For periods when
customer arrivals are expected to average 45 customers per hour, Burger Dome will open two
order-processing servers with one employee assigned to each.
By changing the arrival rate λ to reflect arrival rates at different times of the day and then
computing the operating characteristics, Burger Dome’s management can establish guidelines and
policies that tell store managers when to schedule service operations with a single server, two
servers, or perhaps even three or more servers.
Some General Relationships for Waiting Line Models
John D. C. Little sowed that several relationships exist among these four characteristics and that
these relationships apply to a variety of different waiting line systems. Two of the relationships,
referred to as Little’s flow equations are:

L = λW
𝐿𝑞 = λ𝑊𝑞
The equation for L shows that the average number of units in the system, L, can be found by
multiplying arrival rate, λ, by the average time a unit spends in the system, W. The equation for 𝐿𝑞
shows that the same relationship holds between the average number of units in the waiting line,
𝐿𝑞 , and the average time a unit spends in the waiting line, 𝑊𝑞 . Using the equation for solving 𝐿𝑞 ,
we obtain
𝐿𝑞
𝑊𝑞 =
𝜆

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 Equation for 𝑊𝑞 follows directly from Little’s second flow equation. We used it for the single-
server waiting line model and the multiple-server waiting line model. Once 𝐿𝑞 is computed for
either of these models, equation can then be used to compute 𝑊𝑞 .

Another general expression that applies to waiting line models is that the average time in the
system, W, is equal to average time in the waiting line, 𝑊𝑞 , plus the average service time. For a
system with a service rate µ, the mean service time is 1⁄µ. Thus,

W = 𝑊𝑞 + 1⁄µ
Recall that we used the equation to provide the average time in the system for both the single-
and multiple-server waiting line models.
The importance of Little’s flow equations is that they apply to any waiting line model regardless
of whether arrivals follow the Poisson probability distribution and regardless of whether service
times follow the exponential probability distribution. For example, in a study of the grocery
checkout counters at Murphy’s Foodliner, an analyst concluded that arrivals follow the Poisson
probability of distribution with an arrival rate of 24 customers per hour, or λ = 24/60 = 0.40
customers per minute. However, the analyst found that service time follow a normal probability
distribution rather than an exponential probability distribution. The service rate was found to be
30 customers per hour, or µ = 30/60 = 0.50 customers per minute. A time study of actual customer
waiting times showed that, on average, a customer spends 4.5 minutes in the system; that is, W =
4.5 minutes.
First, using the equation for solving 𝑊𝑞 ,

W = 𝑊𝑞 + 1⁄µ

𝑊𝑞 = W - 1⁄µ

𝑊𝑞 = 4.5 – 1⁄0.50 = 2.5 minutes

With both W and 𝑊𝑞 known, we can use Little flow’s equations to compute L and 𝐿𝑞 .

L = λW
L = 0.40 (4.5) = 1.8 customers
𝐿𝑞 = λ𝑊𝑞
𝐿𝑞 = 0.40(2.5) = 1 customer

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 The manger of Murphy’s Foodliner can now review these operating characteristics to see whether
action should be taken to improve the service and to reduce the waiting time and the length of the
waiting line.

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 Assessment
True or False
1. The study of waiting lines is called queuing theory.
2. A goal of many waiting line problems is to help a firm find the ideal level of services that
minimize the cost of waiting and the cost of providing the service.
3. The three basic components of a queuing process are arrivals, service facilities, and the actual
waiting line.
4. One difficulty in waiting line analysis is that it is sometimes difficult to place a value on
customer waiting time.
5. A bank with a single queue to move customers to several tellers is an example of a single-
channel system
6. The wait time for a single-channel system is more than twice that for a two-channel system
using two servers working at the same rate as the single server.
7. The goal of most waiting line problems is to identify the service level that minimizes service
cost.
8. An automatic car wash is an example of a constant service time model.
9. Two characteristics of arrivals are the line length and queue discipline.
10. A finite population model differs from an infinite population model because there is a random
relationship between the length of the queue and the arrival rate.
Problem 1 (10 pts)
Problems arrive at an ATM booth at an average of 10 clients per hour. The ATM can serve
(process: balance inquiry, fund transfer, withdrawals, bills payment, etc.) at an average rate of 12
clients per hour.
a. What is the probability that no units are in the system? (1pt)
b. What is the average number of units in the waiting line? (1pt)
c. What is the average number of units in the system? (1pt)
d. What is the average time a unit spends in the waiting line? (1pt)
e. What is the average time a unit spends in the system? (1pt)
f. What is the probability that an arriving unit has to wait? (1pt)
g. What is the probability of 3 units in the system? (2pts)
h. What is the probability that one customer is receiving the service and 4 is waiting? (2pts)

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 Reference:

Anderson, D., Sweeney, D., Williams, T., Camm, J., Cochran, J., Fry, M., & Ohlmann, J. (2016).

Waiting Line Models. In An Introduction to Management Science: Quantitative

Approaches to Decision Making (14th ed., pp. 506–546). Cengage Learning.

THIS MODULE IS FOR THE EXCLUSIVE USE OF THE UNIVERSITY OF LA SALETTE, INC. ANY FORM OF REPRODUCTION, DISTRIBUTION,
UPLOADING, OR POSTING ONLINE IN ANY FORM OR BY ANY MEANS WITHOUT THE WRITTEN PERMISSION OF THE UNIVERSITY IS
STRICTLY PROHIBITED.
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