 to minimize total cost involved (both the service and waiting costs).

Objective of Queuing theory

 the value assigned to the different outcomes from a decision.Payoff
 the unknowns used to construct the objective and constraint functions. The values of such
variables are the outputs from the linear programming process. Decision Variables
 the time requires to complete an activity assuming that all available resources (overtime, extra,
manpower, etc.) are devoted to such activity. Crash Time
 the study of how the outcome of a decision process changes as one or more of the assumptions
change. Sensitivity Analysis
 the probability distribution of the possible future states of nature is known. Decision-making
under conditions of risk
 the points at which the decision maker must choose some action
 the points at which some event related to the previous decision will occur. Chance points (State
of nature node or probability node)
 the occurrence of one event has no effect on the other event. Independent Events
 the occurrence of one event has an effect on the other event. Dependent Events
 the longest path through the network. Critical Path
 the length of time by which a particular activity can slip (be delayed) without having any
delaying effect on the end event. Slack Time
 the intersections in a decision tree. Nodes
 the income that would be lost (opportunity cost) by not adding an additional unit of a scarce
resource (constraint). Shadow Price
 the event is certain to occur.. Probability of 1 or 100%
 the event cannot occur. Probability of 0
 the elements common to both the Ss and Sf and the optimal column. Intersectional elements
 the cost of providing service. Facility costs and operating costs
 the cost of idle resources waiting in line, including the income foregone (opportunity costs) in
the case of waiting customers. Waiting cost
 the column whose product will give the most CM per unit. Optim column
 the amount by which the value of the optimal solution of the objective function in a linear
programming problem will charge if a one-unit change is made in a binding constraint. Shadow
Price or dual vaie of a scarce resource
 task to be accomplished. It represents the time and resources necessary to move from one node
or event to another. Activity
 specifies the values of the variables and their respective probabilities. Probability distribution
 shows different activities or tasks in a project, as well as their estimated start and completion
times. Gantt chart or Bar chart
 shows a constant percentage reduction (usually from 20% to 40%) in the average direct labor
input time required per unit as the cumulative output doubles. Learning curve model
 represents the long-term average payoff from repeated trials. Expected value
 represents the activities in a project. Branch
 represents a specialized accomplishment at a particular instant in time. It represents the start or
finish of an activity, such as 1 or 2 in the network. Event
 presents the outcomes (payoffs) of specific decisions when certain states of nature (events
which are not controllable by the decision-maker) occur. Payoff (Decision) Table
 one event will occur given that the other event has already occurred. Conditional probability
 may be considered as a subset of PERT. Critical Path Method(CPM)
 limited to problems with only two variables. Graphical Method
 limit the values of variables. The constraint equations reflect the types of inputs or resources
being allocated. Constraints
 It shows which activity should be in progress as of a certain date and how close it is to
completion time.
 It is based on matrix or linear algebra and provides a systematic way of algebraically evaluating
each corner point in the
 it is assumed that the probability distribution is an accurate representation of the relative
frequency of future demand and that the decision maker knows exactly when each possible
event will occur.
 is the knowledge that a future state of nature (event) will occur with certainty. Perfect
information
 is the difference between the expected value without perfect information and the result if the
best action is taken given perfect information. Expected value of perfect information
 is simple to construct and use, requiring no special tools or mathematics. It can be used on all
types of projects.
 is an arrow diagram on a network showing the interrelationships or independencies of the
various activities of a project. PERT Diagram
 is a very useful technique for planning and controlling activities in a project or the entire project
itself.
 is a very useful control tool
 is a network technique that uses deterministic time and cost estimates. CPM
 is a helpful tool for identifying the best solution given several decision alternatives and future
conditions. Payoff table
 is a graphic representation of the decision paths, the alternative courses of action available to
the decision maker, and the possible outcomes from each alternative, as well as the relative
probabilities and the expected values of each event. Decision tree
 indicates the likelihood of the event’s occurrence. Probability between 0 and 1
 if two events cannot occur simultaneously. Mutually exclusive
 for each decision alternative, there is only one event, and therefore only one outcome. The
event has a 100% chance of occurrence. Decision-making under certainty
 estimates of the likelihood of future events are based on judgment and past experience.
Subjective probabilities
 each decision alternative has several events or outcomes. The probability distribution of the
possible future states of nature (events) is not known and must be determined subjectively.
Decision-making under conditions of uncertainty
 determining the minimum cost for completing the project in minimum time so that an optimum
trade-off between time and cost is achieved. Crashing tge network
 commonly used in planning, as well as in decision-making under uncertainty. Probability Analysis
 can be used to monitor the activities in a project.
 can be called event when all the activities leading to node are finished. Node
 calculated from either logic or actual experience. For example, the probability that a coin will
yield heads is 0.50 or 50% on any single toss. Objective probabilities
 both events will occur. Joint probability
 are useful when sequential decisions are involved.
 are modelled mathematically under certain assumptions in order to achieve a deterministic
solution. Real-life decision situations
 applicable when there are more than two variables. Simplex Method
 an activity cannot be performed unless its predecessor activity is finished. Series
 activities that can be performed simultaneously. Parallel
 a technique for experimenting with mathematical/ logical models using a computer.. Simulation
 a study of random arrivals at a processing or servicing facility of limited capacity. Quaeuing
theory or waiting line theory
 a series of activities from start to finish. Path
 a quantitative technique used to find the optimal solution to short-term resource allocation
problems. Linear programming
 a network technique used for planning and controlling the activities in a project. It provides
management pertinent information about a project. PERT
 a mathematical expression of the phenomenon that incremental unit costs to produce (or
incremental unit time used to produce) decrease as managers and labor gain experience from
practice. Learning Curve or Experience curve
 a mathematical expression of doubt or assurance about the occurrence of a chance event. Its
value varies from zero (0) to one (1) or 100%. Probability