Waiting Lines

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MGT-530: Operation Management (Waiting Lines) Module 10

Regulations:

· GRADING EXPECTATIONS :

1. I recommend that you use the grading rubric to shape your work product (Attached).  

2. With respect to grading, The instructor really looks for 2 things:  citations and substance . I encourage you to include cites and information from scholarly and/or peer-reviewed sources in addition to the course text (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473)

Otherwise, my potential for points is reduced. It  indicates you have read the course materials and searched far and wide for theories, statistics, and facts to address the issue at hand. I encourage you to paraphrase these sources. Convert the content into your own words rather than using direct quotes. This improves the synthesis of information, and it makes the writing more closely resemble your own style. 

In addition to scholarly citations, a substantive assignment is one that not only answers the question but advances the discussion. Please, do more than is expected.

· The writer must apply APA style guidelines.

· Support your submission with:

1. Course material concepts, principles, and theories from the textbook and Use it in the references (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473)

2.  At least Three scholarly, peer-reviewed journal articles such as:

2.1 Insardi, A., & Oliveira Lorenzo, R. (2019). Measuring accessibility: A big data perspective on Uber service waiting times. RAE: Revista de Administração de Empresas, 59(6), 402–414.

2.2 Matta, R. (2019). Minimizing the total waiting time of intermediate products in a manufacturing process. International Transactions in Operational Research, 26(3), 1096.

· Be 2 pages in length, does not include the title page, abstract, conclusion and required reference page, which are never a part of the minimum content requirements.

Waiting Lines

Many businesses utilize waiting lines to manage customer service. For example, banks, amusement parks, supermarket checkouts, fast food restaurants, call centers, check-in counters at airports, emergency departments of hospitals, and so many more. In the course of your week, consider an experience you had that led to a temporary demand for service that exceeded capacity, for example, variation in service duration or arrival rates, which led to a waiting line.

Address the following requirements:

1. Explain common measures of system performance and which of the common measures may be most effective for the business where you experienced a waiting line.

2. Describe why that measure would be effective and develop a strategy to minimize the waiting line while minimizing cost.

3. Develop a calculation to aid the business in making their operational choices.

Thank you for your support

MGT

Operation Management

(

Waiting Lines

)

Module

Regulations

GRADING EXPECTATIONS

I recommend that you use the grading rubric to shape your work product (

Attached

With respect to

grading, The instructor really looks for 2 things:

citations

and substance

. I

encourage you to include cites and information from

scholarly and/or peer

reviewed sources in

addition to the course text

(

Stevenson

, W. (2018). Operations management (13th ed.). New

York, NY: McGraw

Hill Irwin. ISBN

13:9781259667473)

Otherwise

, my p

otential for points is reduced. It

indicates you have read the course materials

and searched far and wide for theories, statistics, and facts

to address the issue at hand.

I encourage

you to paraphrase these sources. Convert the content into your own word

s rather than using direct

quotes

. This improves the synthesis of information, and it makes the writing more closely resemble

your own style.

In addition to

scholarly citations, a substantive assignment is one that not only answers the

question but

advances the discussion. Please, do more than is expected.

The writer must apply

APA style guidelines

Support your submission with:

Course material concepts, principles, and theories from the textbook and

Use

it in the

references

(Stevenson, W. (2018). Operations management (13th ed.). New York, NY:

McGraw

Hill Irwin. ISBN

13:9781259667473)

At least

Three

scholarly, peer

reviewed journal articles such as:

2.1

Insardi, A., & Oliveira Lorenzo, R. (2019).

Measuring accessibility: A big data

perspective on Uber service waiting times

RAE: Revista de Administração de

Empresas,

59(6), 402

–

414.

2.2

Matta, R. (2019).

Minimizing the total waiting time of intermediate products in a

manufacturing process

International Transactions in Operational Research,

26(3), 1096

pages

in length,

does not include the title

page, abstract, conclusion and

required

reference page,

which are never a part of the minimum content requirements.

MGT-530: Operation Management (Waiting Lines) Module 10

Regulations:

 GRADING EXPECTATIONS :

1. I recommend that you use the grading rubric to shape your work product (Attached).

2. With respect to grading, The instructor really looks for 2 things: citations and substance. I

encourage you to include cites and information from scholarly and/or peer-reviewed sources in

addition to the course text (Stevenson, W. (2018). Operations management (13th ed.). New

York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473)

Otherwise, my potential for points is reduced. It indicates you have read the course materials

and searched far and wide for theories, statistics, and facts to address the issue at hand. I encourage

you to paraphrase these sources. Convert the content into your own words rather than using direct

quotes. This improves the synthesis of information, and it makes the writing more closely resemble

your own style.

In addition to scholarly citations, a substantive assignment is one that not only answers the

question but advances the discussion. Please, do more than is expected.

 The writer must apply APA style guidelines.

 Support your submission with:

1. Course material concepts, principles, and theories from the textbook and Use it in the

references (Stevenson, W. (2018). Operations management (13th ed.). New York, NY:

McGraw-Hill Irwin. ISBN-13:9781259667473)

2. At least Three scholarly, peer-reviewed journal articles such as:

2.1 Insardi, A., & Oliveira Lorenzo, R. (2019). Measuring accessibility: A big data

perspective on Uber service waiting times. RAE: Revista de Administração de

Empresas, 59(6), 402–414.

2.2 Matta, R. (2019). Minimizing the total waiting time of intermediate products in a

manufacturing process. International Transactions in Operational Research, 26(3), 1096.

 Be 2 pages in length, does not include the title page, abstract, conclusion and required

reference page, which are never a part of the minimum content requirements.

module 10/MGT530_Module10.pptx

Waiting Lines

Chapter 18

18-‹#›

You should be able to:

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

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

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

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

LO 18.4 What are some psychological approaches to managing lines, and why might a manager want to use them?

Chapter 18: Learning Objectives

18-‹#›

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

Waiting Lines

LO 18.1

18-‹#›

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

Queuing Theory

LO 18.1

18-‹#›

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

LO 18.2

18-‹#›

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

Waiting Lines: Managerial Implications

18-‹#›

Waiting Line Management

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

Costs associated with customers waiting for service

Capacity cost

18-‹#›

Waiting Line Characteristics

The basic characteristics of waiting lines

Population source

Number of servers (channels)

Arrival and service patterns

Queue discipline

18-‹#›

Simple Queuing System

Calling population

Arrivals

Waiting

line

Exit

Service

System

Processing Order

18-‹#›

Population Source

Infinite source

Customer arrivals are unrestricted

The number of potential customers greatly exceeds system capacity

Finite source

The number of potential customers is limited

18-‹#›

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

18-‹#›

Common Queuing Systems

18-‹#›

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

Arrival and Service Patterns

18-‹#›

Poisson and Negative Exponential

18-‹#›

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

18-‹#›

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

Waiting Line Metrics

LO 18.3

18-‹#›

Waiting Line Performance

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

LO 18.3

18-‹#›

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

18-‹#›

Infinite-Source Symbols

18-‹#›

System Utilization

Average number of customers being served

Basic Relationships

18-‹#›

Basic Relationships (cont.)

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

18-‹#›

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

Basic Relationships (cont.)

18-‹#›

M/M/1

Single Server, Exponential Service Time

18-‹#›

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)

Single Server, Constant Service Time

LO 18.4

18-‹#›

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)

18-‹#›

M/M/S

18-‹#›

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

18-‹#›

Total Cost Curve

18-‹#›

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:

Maximum Line Length

18-‹#›

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

Multiple Priorities

18-‹#›

Multiple–Server Priority Model

18-‹#›

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

Finite-Source Model

18-‹#›

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

Finite-Source Model (cont.)

18-‹#›

Finite-Source Model (cont.)

18-‹#›

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

Constraint Management

18-‹#›

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

LO 18.5

18-‹#›

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

18-‹#›

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