The Application of Queuing Analysis in modeling Optimal Service level (original) (raw)
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Queues are common scenario faced in the modern day Banks and other financial Institutions. Queuing theory is the mathematical study of waiting lines; this can also be applicable queues in the banking system. This study examine the queuing system at Guarantee Trust Bank (GTB), putting into consideration the waiting time spend by Customers, Service time spend by a Customer and the average cost a customer loses while in queue and the service cost of each server in order to optimize the system. The First Come First Serve (FCFS) Multi-Server queuing model was used to model the queuing process. The waiting time was assumed to follow a Poisson distribution while the service rate follows an Exponential distribution. This study adopted a case study approach by randomly administering questionnaires, interviews and observation of the participants. The data were collected at the GTB cash deposit unit for four days period. The data collected were analyzed using TORA optimization window based software as well as standard queuing formula. The results of the analysis showed that the average queue length, waiting time of customer with a minimum Total Cost that utilize the system is by using five Servers against the present server level of Three Servers which incur a high total cost to both the Customers and the system.
Queues are commonly sighted in almost every organization where services rendered, especially banks. Therefore, queuing theory which is the mathematical study of waiting lines is suitable to be applied in the banking sector since it is associated with queue and waiting line where customers who cannot be served immediately have to wait (queue) for service. The aim of this research project is to determine the average time customers spend on queue and actual time of service delivery in a certain Bank. The primary data were collected from the bank based on the arrival and service patterns of customers. The methodology employed followed the birth and death Markovian process. The result obtained showed that service rate is nine (9) persons per hour, the arrival rate is twelve (12) persons per hour and the probability that the servers are idle is 0.2471. It is therefore recommended based on the analysis that the bank management should increase the number of servers from three (3) to four (4) in order to help reduce the time customers spend on queue.
Contribution of Queuing Theory to Analyse Various Aspects of Queuing Model
The purpose of this paper is to study the important role of Queuing Theory in reducing Waiting time of customer in Queuing model. The various Queuing models were used to study the different aspects and parameters which interpret the lacuna in Queuing models which helps to improve the system. It will reduced the waiting time of customer and service cost of service facility.
APPLICATION OF QUEUING THEORY ON BANKS EFFICIENT SERVICE DELIVERY
European Journal of Accounting, Finance and Investment, 2020
This paper examines the application of queuing theory on banks efficient service delivery with reference to First Bank, Ayobo Branch, Ayobo, Lagos State, Nigeria. 5Designed questionnaires from respondents were analyzed using percentages. Findings from the respondents' revealed long queue exist in the bank. As recommended, there is need to increase service points, periodic orientation of customers on e-banking, introduction of ATM and recruitment of additional staff for prompt customers service delivery.
On Application of Queuing Models to Customers Management in Banking System
Queue is a common sight in banks these days especially on Mondays and on Fridays. Hence queuing theory which is the mathematical study of waiting lines or queue is suitable to be applied in the banking sector since it is associated with queue and waiting line where customers who cannot be served immediately have to queue(wait) for service. The aim of this paper is to determine the average time customers spend on queue and the actual time of service delivery, thereby examining the impact of time wasting and cost associated with it.We used the Markovian birth and death process to analyze the queuing model , which is the Multiple servers, single queue, (M/M/S) queuing model to analyze the data collected by observation from a bank and from the results obtained, the arrival rate is 0.1207 and the service rate is 0.156, the probability that the servers are idle is 0.44 which shows that the servers will be 44% idle and 56% busy, the expected number in the waiting line is 0.1361, the expected number in the system is 0.9098. The expected waiting time in the queue is 1.276 and the expected total time lost waiting in one day is 3.2664 hours, the average cost per day for waiting is ₦65.328 and from the calculation of the comparing solutions, the average cost per day from waiting is ₦7.966 which means that there had been a saving in the expected cost of ₦65.328-₦7.966 = ₦57.362. This means that with three servers, the average cost from waiting is reduced. Hence we concluded that the aim and objectives of this paper was achieved.
Analysis of Queuing to Customers Management in Banking: A Case Study
Proceedings of the 11th Symposium on Applied Science, Business & Industrial Research , 2019
Banking services have emerged as a foremost service under contemporary circumstances. The vigorous competition among the banking and financial services sector provides a platform for continuous improvements in their services. With the increased usage of banking services, identifying the means of improving customer satisfaction is essential. Psychology of waiting lines has proven to decrease the level of satisfaction through the increased waiting times. The study was undertaken to model and reduce the waiting times at the two counters of a commercial bank. Primary data on arrival and the service times for each customer arrival at the counters were taken. The study was conducted during the working hours for two consecutive weeks. Data collected from 150 customers were modelled using the student version of Rockwell ARENA 14.5 platform. The system was then modelled as multiserver quieuing system with unlimited waiting room capacity.It was run for 100 a replication length of customers. It was observed respective waitng times in the queues of current system to be 11 and 1.52 minutes for counter 1 and counter 2 respectively. Further the corresponding number of customers waiting in the queues were five and one. Therefore, the bank needed improvements for efficient service delivery. The system was simulated on two basic alternatives, namely; increment fo the service rate in a single queue at a time and the increment of the service rate in both the queues at once. The results obtained depicted the waiting times of the queues to be 5.25, 0.16 minutes and 0.52 ,0.12 minutes, respectively for the two alternatives. Thus the bank can eliminate excessive waiting through the increment of the service rate by twofold in one queue or in both the queues at once. The obtained results moreover emphasized the importance of the employees in the service industry and their continuous improvements in both skills and knowledge.
Application of Queuing Systems with Many Classes of Customers for Structural Optimisation of Banks
IFAC Proceedings Volumes, 1997
A significant increase of demand for various services is one of the characteristics of the country economic development. In all the service processes service quality has become a predominant factor. Lengthening of time of a customer service due to firms ' and companies' mismanagement may be the reason for their smaller profits. The aim of this paper is to show the usability of a model based on the queuing system theory in the improvement of operations within a given bank. A model of queuing networks with many classes of customers has been worked out on the basis of a selected bank.
Measure of Performance of Queuing Models and Behavior of Customers in Real Life Applications
International Journal of Applied Physics and Mathematics, 2013
The objective of the paper is to determine customer behavior in queues in four different situations in India. The study is limited to Toll Booth-Delhi Gurgaon Highway, Health care facility for Public sector bank's staff and family, Executive check up in Health care organization and Tellers in a Bank. A detailed study of the queues at the Toll Booth on the Delhi Gurgaon expressway was done as the expressway is highly traversed and is a bottlenecked stretch. In spite of the multiple provisions to ease the traffic on this expressway, chronic delays led to a ruling by the court which made the expressway a freeway for two weeks in September 2012. The second case studied is of the work mechanism of a clinic set up for the public sector bank's staff and family in India. The doctor visits the clinic during specified hours. It was observed that one doctor caters to a large number of patients giving rise to long queues. The third case is of the hospital which has an Out Patient Department (OPD) that provides service for executive health checkup. Our study is limited to the executive health checkups, where a patient first registers and then is guided to different departments for the checkups. Lastly the study was conducted for a bank where the major business of this particular bank is retail banking for which the customer is diverted towards the tellers. Due to cost considerations and space constraint the number of tellers in a bank is limited. Inspite of the use of modern technology to streamline the queues, it is observed that during peak business hours the length of the queue increases resulting in increased waiting time for the customers. This paper attempts to do a comparative study for four different models to understand the behavior of customers waiting in queues in India.
ORIGINAL ARTICLES A Regression Analysis Approach to Queueing System Modelling: a Case of Banks
2011
This paper seeks to establish queuing models that can help banks to improve on their customer service within and outside their place of business. Regression analysis was employed to model the banks' queue system. It was found that The Coefficient of determination, R 2 value was close to unity for multiple linear regression and unity for non-linear regression. Also, the Degree of Correlation obtained was found to be 92% and 100% for the multiple linear regression and non-linear regression which explains that the original uncertainty has been explained by the models thus developed. Therefore, the models clearly indicate that Regression Analysis can be used to model the queuing system of any bank for improved customer service efficiency. Nomenclature: s = Number of servers in the queuing system l = Arrival rate. m = Service rate ρ = Utilization factor L = Expected number of customers in the queuing system L q = Expected queue length (excluding customers being served) W = Waiting ti...
Queuing Theory in today's world-An Overview
When all is said in done we don't prefer to hold up. Be that as it may, decrease of the holding up time for the most part requires additional speculations. To choose whether or not to contribute, it is essential to know the impact of the speculation on the holding up time. So we require models and strategies to investigate such circumstances. In this course we treat various basic queueing models. Consideration is paid to techniques for the examination of these models, furthermore to uses of queueing models. Essential application regions of queueing models are creation frameworks, transportation and stocking frameworks, correspondence frameworks and data handling frameworks. Queueing models are especially helpful for the outline of these framework regarding design, limits and control.