Stevenson_CH18_Accessible.pptx

Chapter 18

Waiting Lines

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Learning Objectives

You should be able to:

18.1 What imbalance does the existence of a waiting line reveal?

18.2 What causes waiting lines to form, and why is it impossible to eliminate them completely?

18.3 What metrics are used to help managers analyze waiting lines?

18.4 What very important lesson does the constant service time model provide for managers?

18.5 What are some psychological approaches to managing lines, and why might a manager want to use them?

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Learning Objective 18.1

Waiting Lines

Waiting lines occur in all sorts of service systems

Wait time is non-value added

Wait time ranges from the acceptable to the emergent

Short waits in a drive-thru

Sitting in an airport waiting for a delayed flight

Waiting for emergency service personnel

Waiting time costs

Lower productivity

Reduced competitiveness

Wasted resources

Diminished quality of life

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Learning Objective 18.1

Queuing Theory

Queuing theory

Mathematical approach to the analysis of waiting lines

Applicable to many environments

Call centers

Banks

Post offices

Restaurants

Theme parks

Telecommunications systems

Traffic management

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Learning Objective 18.2

Why Is There Waiting?

Waiting lines tend to form even when a system is not fully loaded

Variability

Arrival and service rates are variable

Services cannot be completed ahead of time and stored for later use

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Waiting Lines: Managerial Implications

Why waiting lines cause concern:

The cost to provide waiting space

A possible loss of business when customers leave the line before being served or refuse to wait at all

A possible loss of goodwill

A possible reduction in customer satisfaction

Resulting congestion may disrupt other business operations and/or customers

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Waiting Line Management

The goal of waiting line management is to minimize total costs:

Costs associated with customers waiting for service

Capacity cost

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Waiting Line Characteristics

The basic characteristics of waiting lines

Population source

Number of servers (channels)

Arrival and service patterns

Queue discipline

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Simple Queuing System

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Population Source (1 of 2)

Infinite source

Customer arrivals are unrestricted

The number of potential customers greatly exceeds system capacity

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Population Source (2 of 2)

Finite source

The number of potential customers is limited

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Channels and Phases

Channel

A server in a service system

It is assumed that each channel can handle one customer at a time

Phases

The number of steps in a queuing system

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Common Queuing Systems

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Arrival and Service Patterns

Arrival pattern

Most commonly used models assume the arrival rate can be described by the Poisson distribution

Arrivals per unit of time

Equivalently, interarrival times are assumed to follow the negative exponential distribution

The time between arrivals

Service pattern

Service times are frequently assumed to follow a negative exponential distribution

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Poisson and Negative Exponential

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Queue Discipline

Queue discipline

The order in which customers are processed

Most commonly encountered rule is that service is provided on a first-come, first-served (FCFS) basis

Non FCFS applications do not treat all customer waiting costs as the same

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Learning Objective 18.3

Waiting Line Metrics

Managers typically consider five measures when evaluating waiting line performance:

The average number of customers waiting (in line or in the system)

The average time customers wait (in line or in the system)

System utilization

The implied cost of a given level of capacity and its related waiting line

The probability that an arrival will have to wait for service

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Learning Objective 18.3

Waiting Line Performance

The average number waiting in line and the average time customers wait in line increase exponentially as the system utilization increases

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Queuing Models: Infinite Source

Four basic infinite source models

All assume a Poisson arrival rate

Single server, exponential service time

Single server, constant service time

Multiple servers, exponential service time

Multiple priority service, exponential service time

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Infinite-Source Symbols

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Basic Relationships (1 of 3)

System Utilization

Average number of customers being served

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Basic Relationships (2 of 3)

Little’s Law

For a stable system the average number of customers in line or in the system is equal to the average customer arrival rate multiplied by the average time in the line or system

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Basic Relationships (3 of 3)

The average number of customers

Waiting in line for service:

In the system:

The average time customers are

Waiting in line for service:

In the system

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Single Server, Exponential Service Time

M/M/1

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Learning Objective 18.4

Single Server, Constant Service Time

M/D/1

If a system can reduce variability, it can shorten waiting lines noticeably

For, example, by making service time constant, the average number of customers waiting in line can be cut in half

Average time customers spend waiting in line is also cut by half.

Similar improvements can be made by smoothing arrival rates (such as by use of appointments)

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Multiple Servers (M/M/S)

Assumptions:

A Poisson arrival rate and exponential service time

Servers all work at the same average rate

Customers form a single waiting line (in order to maintain FCFS processing)

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M/M/S

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Cost Analysis

Service system design reflects the desire of management to balance the cost of capacity with the expected cost of customers waiting in the system

Optimal capacity is one that minimizes the sum of customer waiting costs and capacity or server costs

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Total Cost Curve

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Maximum Line Length

An issue that often arises in service system design is how much space should be allocated for waiting lines

The approximate line length, Lmax, that will not be exceeded a specified percentage of the time can be determined using the following:

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Multiple Priorities

Multiple priority model

Customers are processed according to some measure of importance

Customers are assigned to one of several priority classes according to some predetermined assignment method

Customers are then processed by class, highest class first

Within a class, customers are processed by FCFS

Exceptions occur only if a higher-priority customer arrives

That customer will be processed after the customer currently being processed

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Multiple–Server Priority Model (1 of 3)

Performance Measure: System Utilization

Formula:

Formula Number: (18-15)

Performance Measure: Intermediate values(Lq from Table 18.4)

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Multiple–Server Priority Model (2 of 3)

Performance Measure: Average waiting time in line for units in kth priority class

Formula:

Formula Number: (18-18)

Performance Measure: Average time in the system for units in the Kth priority class

Formula:

Formula Number: (18-19)

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Multiple–Server Priority Model (3 of 3)

Performance Measure: Average number waiting in line for units in the Kth priority class

Formula:

Formula Number: (18-20)

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Finite-Source Model (1 of 5)

Appropriate for cases in which the calling population is limited to a relatively small number of potential calls

Arrival rates are required to be Poisson

Unlike the infinite-source models, the arrival rate is affected by the length of the waiting line

The arrival rate of customers decreases as the length of the line increases because there is a decreasing proportion of the population left to generate calls for service

Service times are required to be exponential

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Finite-Source Model (2 of 5)

Procedure:

Identify the values for

N, population size

M, the number of servers/channels

T, average service time

U, average time between calls for service

Compute the service factor, X=T/(T + U)

Locate the section of the finite-queuing tables for N

Using the value of X as the point of entry, find the values of D and F that correspond to M

Use the values of N, M, X, D, and F as needed to determine the values of the desired measures of system performance

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Finite-Source Model (3 of 5)

Table 18.6 Finite-source queuing formulas and notation

Performance Measure Formulas Notation†
Service factor (18-21) D = Probability that a customer will have to wait in line
Average number waiting (18-22) F = Efficiency factor 1 – Percentage waiting in line
Average waiting time (18-23) H = Average number of customers being served
Average number running (18-24) J = Average number of customers not in line or in service

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Finite-Source Model (4 of 5)

Performance Measure Formulas Notation†
Average number being served H=FNX (18-25) L = Average number of customers waiting for service
Number in population N=J+L+H (18-26) M = Number of service channels N = Number of potential customers T = Average service time U = Average time between customer service requirements per customer W = Average time customers wait in line X = Service factor

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Finite-Source Model (5 of 5)

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Constraint Management

Managers may be able to reduce waiting lines by actively managing one or more system constraints:

Fixed short-term constraints

Facility size

Number of servers

Short-term capacity options

Use temporary workers

Shift demand

Standardize the service

Look for a bottleneck

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Learning Objective 18.5

Psychology of Waiting

If those waiting in line have nothing else to occupy their thoughts, they often tend to focus on the fact they are waiting in line

They will usually perceive the waiting time to be longer than the actual waiting time

Steps can be taken to make waiting more acceptable to customers

Occupy them while they wait

In-flight snack

Have them fill out forms while they wait

Make the waiting environment more comfortable

Provide customers information concerning their wait

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Operations Strategy

Managers must carefully weigh the costs and benefits of service system capacity alternatives

Options for reducing wait times:

Work to increase processing rates, instead of increasing the number of servers

Use new processing equipment and/or methods

Reduce processing time variability through standardization

Shift demand

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End of Presentation

© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

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