Queuing Theory

By Abdulla Israr & Simran Rani

Queuing Theory

Description also available in video format (attached below), for better experience use your desktop.

 

Introduction

  • Queuing theory is the study of the movement of people, objects, or information through a line.
  • Studying congestion and its causes in a process is used to help create more efficient and cost-effective services and systems.
  • Often used as an operations management tool, queuing theory can address staffing, scheduling, and customer service shortfalls.
  • Some queuing is acceptable in business. If there's never a queue, it's a sign of overcapacity.
  • Queuing theory aims to achieve a balance that is efficient and affordable.

History

·       Queuing theory aims to design balanced systems that serve customers quickly and efficiently but do not cost too much to be sustainable.

·       As a branch of operations research, queuing theory can help inform business decisions on how to build more efficient and cost-effective workflow systems.

·       The origin of queuing theory can be traced to the early 1900s in a study of the Copenhagen telephone exchange by Agner Krarup Erlang, a Danish engineer, statistician, and mathematician.

·       His work led to the Erlang theory of efficient networks and the field of telephone network analysis.

·       At its most basic level, queuing theory involves the analysis of arrivals at a facility, such as a bank or a fast-food restaurant, and an analysis of the processes currently in place to serve them.

·       The end result is a set of conclusions that aim to identify any flaws in the system and suggest how they can be ameliorated.

Methodology & Parameters

·       Methodology

o   Queuing theory as an operations management technique is commonly used to determine and streamline staffing needs, scheduling, and inventory in order to improve overall customer service.

o   It is often used by Six Sigma practitioners to improve processes.

·       Parameters

Arrival

Refers to the customers who arrive and are first in line

Queue or Service Capacity

Refers to the limits of the system as per the number of customers in line

Number of Servers 

Refers to the total number of employees serving the customers in line

Size of the Client Population

Refers to the total number of customers in line

Queuing Discipline

Refers to how requests are delivered to the servers (includes first-in, first-out)

Departure Process 

Refers to customers leaving after receiving service

Applications of Queuing Theory

  • Business logistics
  • Banking and finance
  • Telecommunications
  • Project management
  • Emergency services, such as fire, police, and ambulance

Video Description

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