SERVICE MARKETING

PRESENTATION
Waiting-Line
Models
 CONTENTS

♦ CHARACTERISTICS OF A
WAITING-LINE SYSTEM
♦ A BRIEF HISTORY
♦ Waiting Line Terminology
♦ Waiting line systems.
♦ WAITING LINE STRATEGIES
♦ CHARACTERISTICS OF A
WAITING-LINE SYSTEM
♦ Arrival Characteristics
♦ Waiting-Line Characteristics
Service Facility Characteristics
♦ Measuring the Queue’s
Performance
♦ Queuing Costs
 You’ve Been There
Before!
‘The other line Thank you for holding.
Hello...are you there?
always moves faster.’
‘If you change lines,
the one you left will
start to move faster
than the one you’re
in.’
© 1995 Corel Corp.
 Waiting Line Examples
Situation Arrivals Servers Service
Bank
Process Customers Teller Deposit etc.

Doctor’s Patient Doctor Treatment

office

Traffic Cars Light Controlled

intersection passage

Assembly line Parts Workers Assembly

Tool crib Workers Clerks Check out/in

tools
 Waiting Lines

♦ First studied by A. K. Erlang in 1913

♦ Analyzed telephone facilities
♦ Body of knowledge called queuing
theory
♦ Queue is another name for waiting line
♦ Decision problem
♦ Balance cost of providing good service
with cost of customers waiting
 Deciding on the
Optimum Level of
C Service
ost

Total
expected cost
Minim Cost of providing
um service
total
cost
Negative Cost
of waiting time
to company
Low Optimal High
level of service level of
service level service
 Waiting Line
Terminology
♦ Queue: Waiting line
♦ Arrival: 1 person, machine, part,
etc. that arrives and demands
service
♦ Queue discipline: Rules for
determining the order that arrivals
receive service
♦ Channel: Number of waiting lines
♦ Phase: Number of steps in service
 Three Parts of a
Queuing System at MR
“X” Car-Wash
 Input Characteristics
Input Source
(Population)

Size Arrival
Pattern

Infinite Finite Random Non-

Random

Poisson Other
 Input Characteristics

Input Source
(Population)

Size Arrival Behavior

Pattern

Infinite Finite Random Non- Patient Impatient

Random

Poisson Other Balk Renege

 Waiting Line
Characteristics

Waiting Line

Length Queue
Discipline

FIFO
Unlimited Limited (FCFS) Random Priority
 Service Characteristics

Service
Facility

Configuration

Single Multi-
Channel Channel

Single
Phase
 Single-Channel, Single-
Phase System
Service system
Served
Arrivals Queue Servic units
e
facility

Ships Ship unloading system Empty

at sea Waiting ship line ships
Dock
 Single-Channel, Multi-
Phase System
Service system
Served
Arrivals Queue Servic Servic units
e e
facility facility

Cars McDonald’s drive-through Cars

in area Waiting cars & food
Pick-
Pay up
 Multi-Channel, Single
Phase System
Service system
Served
Servic units
Queue e
Arrivals facility
Servic
e
facility

Example: Bank customers wait in

single line for one of several tellers.
 Multi-Channel, Multi-
Phase System
Service system
Served
Servic Servic units
Queue e e
Arrivals facility facility
Servic Servic
e e
facility facility

Example: At a laundromat, customers use

one of several washers, then one of several
dryers.
 Assumptions of the
Basic Simple Queuing
Model
♦ Arrivals are served on a first come,
first served basis
♦ Arrivals are independent of
preceding arrivals
♦ Arrival rates are described by the
Poisson probability distribution, and
customers come from a very large
population
♦ Service times vary from one
customer to another, and are
independent of one and other; the
average service time is known
♦ Service times are described by the
negative exponential probability
 Types of Queuing
Models
♦ Simple (M/M/1)
♦ Example: Information booth at mall
♦ Multi-channel (M/M/S)
♦ Example: Airline ticket counter
♦ Constant Service (M/D/1)
♦ Example: Automated car wash
♦ Limited Population
♦ Example: Department with only 7 drills
 WAITING LINE
STRATEGIES
When demand and capacity cannot be
matched:

♦ EMPLOY OPERATIONAL LOGIC

A] Multiple Queue
B]Single Queue
C]Take a number
 Contd…..

♦ Establish a Reservation Process.

♦ Differentiate Waiting Customers.
iii.Importance of the customer.
iv.Urgency of the job.
v.Duration of the service transaction.
vi.Payment of a premium price.
MAKE WAITING FUN,OR
AT LEAST TOLERABLE

♦ Unoccupied time feels longer than

occupied time.
♦ Preprocess waits feel longer than in
process waits.
♦ Anxiety makes waits seem longer.
♦ Uncertain waits are longer than
known, finite waits.
♦ Unexplained waits are longer than
explained waits.
 Contd…..

♦ Unfair waits are longer than

equitable waits.
♦ The more valuable the services, the
longer the customer will wait.
♦ Solo waits feel longer than group
waits.
 THANKS
YOU