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  • Understanding Queues: Capacity Length Example

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    Abubacar Samsoden
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    Even with capacity exceeding average demand, queues will still occur due to variations in arrival rates. The longer the queue, the higher the utilization needs to be to support it. While increasing utilization reduces waste, it also increases queue lengths. Reducing waste by just 10% can double queue lengths. Managers should plan spare capacity and the ability to transfer resources to balance utilization and minimize queues during periods of high demand.

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    Cost Reduction 1

    Original Title

    Understanding Queues

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    Even with capacity exceeding average demand, queues will still occur due to variations in arrival rates. The longer the queue, the higher the utilization needs to be to support it. While increasing utilization reduces waste, it also increases queue lengths. Reducing waste by just 10% can double queue lengths. Managers should plan spare capacity and the ability to transfer resources to balance utilization and minimize queues during periods of high demand.

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    19 views1 page

    Understanding Queues: Capacity Length Example

    Uploaded by

    Abubacar Samsoden
    Even with capacity exceeding average demand, queues will still occur due to variations in arrival rates. The longer the queue, the higher the utilization needs to be to support it. While increasing utilization reduces waste, it also increases queue lengths. Reducing waste by just 10% can double queue lengths. Managers should plan spare capacity and the ability to transfer resources to balance utilization and minimize queues during periods of high demand.

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    of 1

    Customer Care

    Understanding Queues
    ♦ Even when your ‘ability to cope’ exceeds average demand
    you’ll still get queues – because of variations on demand
    (arrival rate)
    ♦ The queue lengths WILL be as follows:

    Capacity Length Example

    • 95% 20 Airport

    • 90% 10 Post Office

    • 80% 4 McDonalds

    • 75% 3 Supermarket

    • 50% 1 Petrol
    ♦ C - If the customers are happy (queue =1) then
    management will be unhappy because utilisation will be
    only 50% and costs will be double what they could be
    ♦ M - If management are happy (90% utilisation) then the
    customers will be unhappy (queue = 10)
    ♦ Halving “waste” doubles the queue

    Utilisation: 80% ! 90% 90% ! 95%

    Waste: 20% ! 10% Waste 10% ! 5%

    Queue 4 ! 10 Queue 10 ! 20

    ♦ Sensitivity – if waste reduces by just 10% the queues can


    double!
    ♦ Plan in some spare capacity (and the money for it!) so you can
    provide a service that copes with variations without queues
    building up
    ♦ Be able to transfer people from quiet areas to areas which
    have a queue

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